I don't really looked much at the repair yet, do have 1 broken sword (bashing vases in the tutorial dungeon and it was a goner, oops).
Finding repair NPC's is hard, and I really hate having to just give it a try and always get 'repair level too low'
I figured the endurance penalty was just for vendor NPC's and the PC's skill would NOT impose that same penalty? (Though I have not gotten someone to 2 to test). As I said 2, I agree weapon degredation require high repair skill very very fast.
I personally would probably go more for the opposite. Statistics (efficiency) decreases per about 25% endurance dropped. Repair 5 allows you to keep weapons in top shape 24/7, while lower repairs only prevent and fix the inevitable, but still suffers you with reduced efficiency until you get it better fixed.
Of course I really hate durability, but *if* it had to be in; that way.