I'm curious what the "sweet spot" is for repairs. In DAoC, I found repairs to be an annoyance rather than a meaningful money-sink or excuse to skill up a crafter. Repairs do make a LOT of sense, though. In real combat, weapons break all the time, armor gets dinged up, and the like. Prohibitively expensive (in terms of coin, time, or both) weapons make weapon breakage an emotional event for fantasy heroes, however. Imagine the blade snapping on your Vorpal Longsword +4 in a random encounter with Orcs; you might lose your mind.
This is another reason why I prefer a system that promotes equipment turnover. The sting of weapon breakage would presumably be less painful when you're more accustomed to that and losing your weapons under other circumstances.
I do acknowledge that something has to give. It's Pathfinder, after all. Players have every right to seek extremely high-end equipment and have a reasonable expectation that they can use it regularly and keep it in their possession and intact. In my personal experience, though, I preferred relatively easy-to-replace ships and fittings in EVE than grinding out templates in DAoC or LOTRO.