That would lend more realism into the game as would wear and tear on items.
But I'll be happy if they create a stable game that we can create our own stories and adventures. Maybe Larian could allow the user community to design and create custom items? Doesn't seem too hard to code racial limitations on items if desired.
This might be a good idea to go put into the Editor thread that is stickied. As long as what you're saying isn't like 'we contribute ideas for items/amor/etc. for larian to implement' (Swen as stated before that user created content is a terrible idea).