4) Condition will never go down in value but only up to its maximum value. So fighting(or anything for that matter) will not decrease condition.
This sounds like you want durability scrapped and some crafting facility to improve items.
Originally Posted by Chratis
3) You can only increase condition by using a repair hammer or shopkeeper to increase the value of Condition which will in turn increase the damage it does.
Not sure repair hammer should be the only way. In previous Divinity games you could combine gear with various things - sharpening weapons to increase damage, combining leather armour with fire or essences to increase resistances, adding charms end enhancements etc.
If so I agree (but then I like crafting). Improving things feels better than stopping them breaking.
I'm playing DOS EE at the moment and have to repair everything after each fight is pretty dull.