otoh...
If she's a 'Lady' she's an aristocrat, not a commoner.
It makes more sense to think of her as a Queen giving a present to a fellow monarch instead of a smith who happened to come up with a great weapon.
I always figured she was the ruler of the fae who lived in the other dimensional version of England. She wanted peace and harmony in the human realm because conflict would spill over into her possessions.
President Kennedy made a joke that he'd go down in the history books as the man who brought Jackie Kennedy to Paris. We think of the Lady in relation to Arthur because that's the only reference we have. She had a life long before and long after she met him.
