It's an interesting take on it, I'll give you that. Infinite durability is a bit bland, but having to periodically check every piece of equipment equipped by every character is a bit tedious, so an alternative look at durability is worth doing.
On the plus side, at least DOS2 doesn't have the weirdly fragile repair hammers we saw in Oblivion (which I renamed to "repair kits" to make the idea a bit less absurd, but it was still tiresome).