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[Daveorock]

So, really, besides speed of cutting, what's the use of one? I've had one for a while now, and now I see it as a bad thing, actually, cause every 3rd gem she cuts becomes a craft or a large gem, and those are virtually useless (besides a trade good). Legendary gem setters are good though, encrustings actually have a quality.

[Frogwarrior]

Other than the speed of gem cutting (most jobs are faster for skilled dwarves), there's frequency and quality of gem crafts and goods.
However, those crafts and large gems aren't putting you at that much of a disadvantage trade-wise, other than the fact that you have to haul them individually to the depot because they can't be stockpiled, and having to destroy/rebuild the jewelers shop to avoid clutter (that, or directed dump the gem crafts). This is because unless I'm mistaken, improvements have the same base value (10) as crafts and large gems. So a legendary gem cutter who makes a large gem, compared to the gem cutter cutting it into normal gems and a legendary gem setter encrusting them onto something, is going to produce the same amount of dwarfbucks.

If you're encrusting furniture, though... no such luck. Furniture improvements count X2 for fort value since they increase both the value of the item and the value of the room they're in.