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I was stuck with iron for quiet a while for this reason. But with hardened steel tools and the right places to farm ironstone, the problem disappeared.
Robbery was always the fastest way in mankind's history.
Slaves alwasy did (and do) the hard jobs for 'free'.
IMHO it's very balanced as it is. Smelter-Thralls would be useless. Same for Raids.
I think making explosive's is much worse. Dragon powder is overkill on the resource requirements.
But Alchemist II does reduce the amount of tar you need.
The area just south of Tower of Bats got an amazing lot of iron. You can farm it in light armour even at level 15, just bring a mule and an extra pick :).
Asegard is level 50 about, you need heavy armour and it's thrall unfriendly.
BTW hardened steel is not worth the effort, because the quality of hardened steel is (far) below steel.