I've suggested pretty much the same in the past, but now that I have a recent example, I'll reiterate that I think the game can benefit from taking a page from Dragon Age's injuries. Not as simplistic, since ideally a first-person game with such damage would use locational damage, but presenting such non-health injuries as status icons on the character screen is an easy way to present them without added complication that some people might worry about when they hear of additional injury options. If the game takes a "paper doll" approach to character display it could be simplified further by putting the icons next to the relevant body part.
I think the same approach could easily apply to armor, as well. Instead of the universal durability you could have multiple damage types and risks that add some strategy to what you're equipping against who. Icons would be easily displayed next to durability when you select an item. For example, blunt attacks can cause the "dented" effect. It doesn't severely effect defense, since the metal is still there, but as the armor becomes bonked out of shape it's harder to move freely in. When highlighted to show the effect, status effects could have a 0-100% measure for how severe it is, the higher the number the worse the side effects. 5% dented is relatively insignificant, but 100% would be an unrecognizable mess it's hard to move in, let alone fight in. "Gouged" armor has been penetrated, creating a higher chance than an enemy attack will ignore armor, hitting you without striking it since you've got an added weak spot with that hole. Durability would still go down separately as an overall measure of the item's condition, so it wouldn't necessarily need high "injury" status to be broken, nor would 100% in one effect be an auto-break.
Aside from strategy, it would also provide some variation with the effectiveness of armor according to material and quality, instead of the bland, universal application of "defense." A masterwork steel cuirass might provide the same basic level of protection as a regular one, but be more resistant to damage of any type. Ebony armor, being heavier and harder than other materials, could have extremely high resistance to lesser material, even increasing the wear to weapons of those types used against it. Different materials could also have different reactions to damage types; metal armor, exposed to extreme heat, could get the "melted" effect. The armor is still there, but the alloy has been ruined by superheating and then cooling, and is now more easily shattered by heavy blunt attacks. Leather armor, however, wouldn't melt but could get the "burned" effect. While cuts in the armor could be stitched up fairly easily, burns might require that the player have spare leather in their pack to replace damaged portions.
Unique items could also benefit from it, to make them special in other ways besides basic stat boosts. The Savior's Hide, for example, might be immune to burning or could slowly heal from such damage. For something more exotic, maybe for any animal you kill just examining the body allows its hide to be used to repair the armor regardless of player skill. Effective, if creepy.
Maybe they should just create a whole new TES V Suggestions forum though, then we could have one place strictly for putting in our ideas and it wouldn't be too cluttered or stepping all over regular ES threads for Oblivion or Morrowind.
It should be noted that efforts to split up the suggestion thread have been done in the past, and never went anywhere...general moderator response is that until the game is officially announced, they're not going to bother devoting extra forum space to it.