In its current state this feature is a nusciance; I "waste" time after big fights to go through all my characters items to repair them.
I think this feature should be an option for the player or game master to set.
You can make this feature more strategic by placing a chance of failure with the repair, dependent upon the skill level of the person repairing the item. If implemented this way, would we automatically repair after every fight when something is 47/50? Maybe we wait until it's 10/50 before chancing a repair that has a small chance to fail and render the item useless. Maybe there are NPC shopkeepers who not only sell items but can fix items for a fee?
Just some possibilities for making this feature a viable part of the game.