I'll certainly be glad to have the extra space, but the restrictions are irksome.

Like the item storage NPCs in FFXI, these just create a simple true/false flag to denote whether or not you have the item. This is why it can be unlimited. However, I seriously doubt it would bring the server down to store two additional numbers for condition and spiritbond. Is it more work? Yes. But the player's needs should be prioritized over their own.

And the main reason to allow things under 100% in is for convenience and ease of use by the player. Conditions like this interrupt the flow of play - I already know that there will be multiple times when I run home to dump something in my Armoire, try to and realize it's not 100%, run back out, look for repairs, etc. Even if I can repair it myself, I still need to leave the room, repair it, and go back in.

At the very least, they could lower it to 99% so you don't need to find another person to do it or repair it yourself.