Never played Daggerfall, but from my experience in Oblivion, the whole "equipment wear" system would have to be seriously toned down. (random example - having to repair a shield from 0 condition up to 100 again, every ~3 fights. Obviously, that shield didn't have many "hp", but still..... stuff would have to wear out a heck of alot more slowly, to make taking away "field repairs" practical.)
In Daggerfall the equipment degrading was much slower. Some of the basic stuff you'd have to replace after a couple hours of using it, but chances are that you had a spare from clearing out the dungeon. Nicer equipment you could go through those four hour dungeons and not worry about them breaking at all.
The repair system in Daggerfall usually had you come back in one or two days, during which you could take one of those quick local quests for the fighter's guild or whichever religious organization you joined. The Arena system of repair was actually better in that you would choose what price you wanted to pay, and the smith would tell you how long it would take based on that. So people in a hurry would pay up. People with time could wait at the back of the line.