IMO it is crazy. Why? Because harvesting is ONLY method to earn money and create something. So it is ONLY method to lvl up, e.g. on manufacture, alchemy, etc. With so slow harvesting it is going to be impossible to train skills, because you have to have a week to harvest ingredients :]
It's nice that i can harvest and same time look at map or something, yes i like it, but it should not be so slow!
It is a game, and the most important feature of all fames is to make game playable. With harvesting iron 1 per 7 seconds it is IMO not playable. For low levels it is not easy to harvest because small strenght/load. Making it harder is not needed.
So as I said, i like to know WHY?
Maby it is because you like people to buy e.g. Fire essences in the shops instead of making it 'at home'. To do it just make prices lower, not harvest impossible ;-)