I think the hammer repair should be a skill like 'blacksmith' instead of giving it for granted as long as a character has a hammer in her inventory. Cause at the moment, there is no real downside for durability as you can simply repair everything if there is a hammer in the party (by the way, on that matter, could it be possible to have a 'repair all' button somewhere? cause it's quite cumbersome to go through each piece one by one).

It would be quite more challenging if the degradation of an item was coming with a slight chance for it to break down any moment. Like let's say you have an item with a durability of 60. When it gets to 50, there is 1% chance it breaks on each use, then when it's 40, 2% and so on.
The quality of the equipment could even be used to decide what the percentage is each stage. For instance, a low quality item would have 3% more chance to break at each stage while a good quality item only 1%. A bit more unpredictibility on that matter would be more fun in my opinion.