The item durability feature almost seems like a compromise between the two camps(item durability vs. no item durability), but not really in a good way.
It seems kind of pointless and inconsequential, except as a moneysink.
From 100% to 1% durability: No problem!
0% durability: Oh, you just lost a durability point? Here, now your weapon/armour is suddenly only half as good.