Fridge Brilliance: The animation makes the characters (with the possible exception of Dragon) seem like sophisticated marionettes, and fantasy adventure stories are popular subjects for puppet shows. Indeed, they have been portrayed that way at least since medieval times, so the medium is in-keeping with Jane's era.
While watching the show, it's evident that Gunther relies heavily on his physical strength in his knight training. Now watch how Gunther acts around Smithy. Smithy seems to be the one other kid Gunther is somewhat intimidated by. Why? Because Smithy's bigger and stronger than he is; Gunther would lose to him in a physical fight. And what's more, based on how Smithy acts around Gunther, he knows it too.
Fridge Logic: In the All Fools' Day episode, one of the pranks Jester is accused of (actually the work of Dragon) is welding Smithy's tools to an anvil. Smithy, as his nickname indicates, is a blacksmith. WHY did it take him so long to figure out Jester couldn't have been responsible?