I'm just curious to see what they'll do, since none of our equipment beyond Power Armor had an condition or health rating shown. The pragmatic guess is that our equipment won't degrade at all, but we'll be able to break down other weapons and incorporate their components; Skyrim shifted item degradation to item improvement/crafting, so the Fallout version of that would be the safe bet.
But we've seen armor pieces getting blown off of a raider in the combat videos. And it would make sense with the layered armor system. It might just be armor that breaks down, and we have to take broken pieces to a workstation to repair them. So, how does the game decide when armor finally breaks, if not from a condition meter? Maybe it has something to do with armor-penetrating attacks.