I personally like the idea, but there needs to be a cost associated to it and it needs to be (marginally) more than if the person were to use an NPC to repair. If the gear was to go over 100% (like when players repair their own gear) then SE also wouldn't have to worry about people using it to trade vast amounts of money across servers (as you would literally have to do 100% damage to get back to a position where you could repair again and for the time involved for the small amount involved...).
With the higher repair cost it also encourages people to get in the habit of repairing gear before going in. I believe repairs in instances should be more of a "in an emergency" than expected behaviour.


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