But does that option "death" only affect the player and his companions, or also every NPC like lords and ladies? In the game they say: "Choose if heroes are able to die on the battlefield." Technically, every NPC like other lords of other kingdoms are heroes if you read the encyclopedia, not only your companions.
i prefer smithing with companions and not with the main char. Its a waste of skill points to train it with the main char. technically there are cheats for that - but this specific one will reset all your skill-levels to 0 aswell. You can always smelt down Thamakane weapons for it. I think Sturgians tend to have them.
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mount and blade 2 bannerlord how to dismiss companion