Eliminating durability and repair is a terrible idea, pushing the game even forward into those “streamlined” ideals so close to causal gaming. I do agree that, as it is now, the system makes little sense.
My proposal: add durability to Tactician or higher difficult levels; introduce ‘consumable’ repair kits specific for the weapon / armor; make an item lose max durability every time is repaired on the field (e.g., an item with 50 max is lowered to 40 max using repair kits); require a blacksmith to repair items without losing max durability; make it impossible to repair special items (magical, high level items) save from special repair kits and/or experts; balance the speed of degradability (make sure players carry several weapons to balance their needs); increase degradation for improper use like bashing chests (items must lose durability even during proper use).
On a similar topic, make food useful again: players must eat (and sleep) or lose a % of accuracy each unit of time. Make finding recipes for food exciting again (right now food is useless). Make it possible to find extremely rare recipes to gain permanent (but small) bonuses (% accuracy, or dodging, or 1 point of strength over 10 magic pies…).
Another idea: make very few special items gain ‘experience’ (as you ‘tried’ in EE).
And finally: for the love of God, give us more control over the camera angles… I love the new vertical challenges you have introduced, but now it is even more difficult to navigate the environment. Let us see more in front of us!
BTW, DOS 2 is just such an incredible game, bravo.