For Fallout, I won't mind if degradation is cut from the game. Degradation has its place in maintaining MMO economies in constantly getting people to keep looking for replacements. Sadly, the reason most people play MMOs is to get all the best $#!% and then ditch the game for the next new MO because there is nothing left to acquire, and developers keep developing for this crowd, over, and over and over and over again. It's why the MMO bubble is in a $#!% hole that's finally actually starting to look at what progression should provide that doesn't amount to sheer vertical power and how players can interact with their worlds without resorting to 1500 generic kill/fetch quests, but I digress.
In a single player game, all I'm doing is using a cool toy and hoping to find something adequete to replace it. I won't have a large player pool to draw from, so it's a risky move. If the tool never leaves the inventory, just becomes unusable until repaired, then it's a pointless mechanic that just places "ammo" into the usage of a tool. In the long term, it accomplishes nothing. In the short term, an "oh $#!%" moment. Either items leave the inventory or durability is a moot point.