You will need a workbench, so no more magic repair hammers.
Has this been confirmed? If so, they're going to have to make weapons and armor last a lot longer, because in past games, I'd sometimes need to repair my equipment after just one difficult battle, and that's going to be pretty gamebreaking if you can only repair items at certain specific locations.
Myself, I'd be perfectly content to stick with the old method. The method of Fallout 3 and New Vegas was nice, but I think worked better in that setting, since I don't think say, a sword has enough small parts in it to make such a system really work. Repair hammers may not have been exactly realistic, but I don't play the game for realism. They got the job done and rewarded the player for carrying them around and trying to raise the appropriate skill rather than just paying people to fix your items, and in RPGs, rewarding the player for raising skills is important, and it doesn't always need to be done in a realistic fashion.
EDIT: I don't know if this is too much, but realistically a sword wouldn't last forever.I think after enough repairs it'd get to the point where the blade would break. Maybe this could happen to lesser weapons (iron/steel) but definitely not Daedric Artifacts or other high-end enchanted weaponry.
Definitely not, I don't want to permanently lose my beloved weapon except by my own choice, even if it only applies to low end, non-unique weapons, especially if I've enchanted said weapon.