.....Totally forgot about Hardness O.o Generally cause, unless it's specific instances, it doesn't crop up.
But hasn't it already been mentioned that by creating skills around, such as Sunder, and making it more involved than "take a second to repair items after every battle when yellow symbol is there" <- this seems the major problem. We know that isnt fun, so we gotta change the circumstances before we can say if it's a system that should go away in its entirety.
I think Sunder would be a good warrior skill, could add corrosive spell to earth, a disarm to wind, and so on. Gives more tactical flexibility.
EDIT: I guess, I'm trying to say we should push for Larian to expand on Durability and how it's used before casting judgement.