I hate that repair hammers/identifying glasses are consumed when you repair/identify. While I would not be sad to see durability dropped completely, if it needs to be kept, why not make repairs have a small gold cost instead of consuming an item? It kills immersion to carry 300 repair hammers at all times.
I don't mind the idea of repair/identifying in general, as long as it isn't completely tedious. I like making sure I am "geared up" for adventuring by making sure I carry some sundry items that will aid in my journey, and its fun to get a mysterious purple item and then excitedly identify it (especially in DOS2 because my wife's character has lucky charm and I have loremaster, so she always opens all containers and the only excitement I feel about looting is when she sends me the items to identify). Consuming my gear, however, upon its use just makes for a tedious run back to a central hub in order to buy more items. If I am careful in my battles I can conserve potions and keep from having to bounce back and forth between resource management and adventuring, and I feel rewarded when I am tactical enough in my approach to not use potions. There is no way that I can obviate item deterioration, though. Ultimately, item deterioration to me seems like a game momentum problem, so I hope that any solution Larian implements keeps game momentum in the forefront of its concerns.
Being able to repair items with like items would work well, too, since you naturally get them when looting. After a battle I stop and examine what has dropped anyway, so taking the extra step to decide what to scrap for repair parts or what to keep to sell wouldn't cause a lurch in momentum and would solve the problem of making tactical decisions about how you use your resources. Likewise, as long as repair materials were easily obtainable from looting (if you don't want to make armor and weapons able to be broken down for parts) I would be ok with repairing.
