I like the idea. As has been said though, there are already armours that can be got as unique items.
Would there be a way to incorporate the two together? Reduce degradation time more (armour only degrades if hit in battle or by an infiltrator, weapons only degrade if used in battle for example)
Also, having unique items repairable by any item (or value of items) through a sage would make them more appealing to try to keep long term.