I have got to say I am quite conflicted over this. Yes death penalties suck but they are supposed to, you need team motivation to not die when you're doing stuff to keep everyone on their toes.

With that said, I do think the durability percentage at the moment is a bit high. Zane suggests:

Quote Originally Posted by Zane View Post
- Reduce gear damage to 5% on death. This will still impose a penalty that will discourage reckless behavior while not forcing people to either level every single crafting job in order to repair their items in the field or avoiding anything that might pose even the slightest bit of danger. (Where is the adventure without danger?)
I think a more progressive decrease in durability may work better, for example first death lose 10%, then 7% then 5% onwards. This will still take a good chunk for repeated deaths but if you are unlucky to have several in a short amount of time you won't have to repair your gear immediately - that's a change for 4 deaths from 40% to 27%, it is still substantial enough to warrant a repair but not enough to warrant heading back to town until you have finished what you are doing.

Zane also suggests:
Quote Originally Posted by Zane View Post
- Allow the repair NPC to repair accessories. While accessory damage really does not matter, I often feel embarrassed joining behests with the red repair icon next to my name. It makes me feel like I'm showing the other players that I don't care about my gear.
I agree with this, up to 75%. I think SE have withheld this thus far to give crafters more of an edge over the NPC.

Quote Originally Posted by Zane View Post
- Allow the repair NPC to repair items to 100%. With gear at 75%, just 3 or 4 deaths sends us into red. Repairing to 100% would help give us a little wiggle room in allowing 4 or 5 deaths before we have to run back to town.
This I disagree with, there needs to be an incentive to use crafters. But I share your feelings on wishing it was easier to get your gear back to 100%.

I think there needs to be an overhaul of how repairs are done, the system is not TOO bad but as someone suggested, there could be many ways to make it easier.

Perhaps submitting your gear to an NPC at one counter in your home town (Ul'Dah... lol) and having someone querying a different NPC at the same counter waiting to repair gear could work? It might be a nice thing to implement in Ishgard when it opens (assuming it will be the new Jeuno).

Quote Originally Posted by Zane View Post
- Place repair NPCs at each of the camps. There is already an NPC at each camp that offers support imagery for crafting, why not allow an NPC for repairs? Perhaps the NPCs in town will repair to 100%, while the NPCs at camp will repair to 75%? .........
I disagree with this, I think it is slightly too easy.

To summarise, I agree there needs to be a durability loss as a death penalty. I think it needs tweaking to be less harsh (only slightly) and the ease of getting repairs adjusted accordingly.