BFT2020
Well-known member
As far as equipment, having to use a lesser piece of equipment because you can't repair your better equipment anymore is hardly something to be excited over, nor does it extend late game as many players will be less enthused about continuing with worse equipment than continuing with the same equipment. A pitfall in a game that has looting being a fairly significant part is to not have new and better loot available for long enough into the game. Making people change equipment for less or even equal equipment just for item degradation doesn't solve that. People will want to upgrade, not just replace.
Some people might think differently, or at least this player does

I have modded my game so you can't repair equipment. I have found iron or steel tools in loot (before I have the resources to craft new ones) and I will use them until I break them, then go down a tier.
In my playthroughs, I have had instances where I was using a Q5 steel pickaxe to mine until it broke, then crafted a Q4 iron pickaxe as a replacement until I found another steel one or was able to start crafting my own steel tools.
But that type of playing requires a specific mindset (where the goal of the game is just to survive with what you got) rather than looting to find the best gear and using it from that point on.