Shall we oscillate together?
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I think there's a little sarcasm in there, but I don't think they were greatly affected by deteriorating. You could probably run it down to I dunno...20%, or 0, I don't notice a ton of difference on any gear except for weapon. Weapon I tend to notice at least prepatch, a decrease in damage done.
Yup, me too. So, I think durability loss as a death penalty is just fine. But, as you said, in WoW it takes like two seconds and you're up to 100%. Plus, they have repair NPCs in every camp and quest hub and several in each major city.
As others have said, I would like to see NPCs repair to full, even if it costs more gil (as it's a convenience compared to having a repair done with dark matter). And there needs to be more NPCs than just one in each city.
I'm just fine with the current death penalty. I never EVER want to see exp loss as a death penalty again. It would be a dealbreaker for me.
On the bright side to all this repairing, I'm getting lots of sp from repairs at the r45 new dungeon. And some pocket change.