I think you still didn't understand all of it.
First of all it is important to say that equipment would obviously degrade much slower than it was the case in Oblivion. If it would degrade as fast as in Oblivion the system would of course become annoying as hell.
1. You need to plan ahead. If your weapon/armor breaks in the middle of a dungeon you're screwed and you need to use something that is worse and possibly fight your way back to civilization with the bad gear equipped. I guess some people may not like this because they just want to run around and kill things without wasting time to think about anything. To each their own.
2. There would be no 'best' armor or weapon. There would be equipment with pros and cons. Do you want an armor/weapon that degrades relatively fast, but has a high armor rating/high damage rating? Or do you prefer a reliable armor/weapon that almost never breaks, but has a slightly lower armor rating/damage rating? Of course equipment that is more reliable has a smaller upkeep, so if you're out of money/materials that may be the better choice. But if you worked hard to become rich (and maybe invested some time to increase your speechcraft skill so merchants give you better prices) it won't be a problem to use the more expensive gear.
3. It would be an additional money sink. In ES games you always have too much money and there is nothing useful you can spend it on. If you can't find enough materials and/or have a low smithing skill and thus can't repair the armor yourself you need to pay a smith to do it for you. Money becomes important.
So yes, maybe there would be a situation where you shouldn't use the legendary supercrazy armor you have in your backpack. That's what the fun is about for me. I want to make meaningful choices. And not just pick up the ultimate, best sword and click the left mouse button repeatedly.
I don't think I didn't understand. I just don't think he fleshed it out as much as you. For instance, he never said there was no best armor. He never mentioned the money sink.
To your first point and especially when you say the following: "I guess some people may not like this because they just want to run around and kill things without wasting time to think about anything."
This is just hyperbole. It's not that people don't want to waste time thinking about anything, it's that they don't want to waste time thinking about tedious, non-immersive chore-like activities. The activity I want to think about should be well thought out and executed. Otherwise, it feels like a worthless waste of my thoughts and time. Repairing and equipment swapping may be an involved thought process for you, but most do not find it challenging.
And to your second point about there being no best armor, I'm with you on that. I think it would be nice to have varied advantages and disadvantages. I just don't think durability needs to be one of them. Having to search the world or spend ridiculous amounts of gold on a repair system sounds lame to me. I do not want to play a game where I'm constantly managing inventory because I need to carry around 3 sets of armor, 4 weapons, materials for repairing all of the stuff and whatever other small items I might be able to fit in my pack. That system sounds tedious to me. However, I am a lot happier now that I can keep a few sets of armor and weapons for various situations at my house, and just visit it to trade them out whenever I feel the need to.
And a money sink can be found elsewhere. For instance... Blacksmithing. It's going to take materials to make items. Materials cost gold or time. It's going to cost materials to improve items. Since you have no frame of reference for this specific economy, I'm going to assume you have no clue as to whether or not this game requires addition money sinks to help keep gold piles under control. How can you know they need an additional money sink if you have no idea how much gold is available in the world?