Well, well. It depends on how you play.
Of course, leveling up to level 5 takes a long time, but you can level up both in the game and in the forge at the same time =)
However, in the last skirmish, I couldn't equip the hero with any weapons. Although I allowed weapons of the dynasty in the map settings. I suspect that this is again one of the limitations of Soul Forge. Either due to technical problems or as a penalty.