Put a separate cap: max 100 Unique per island, max 5 Legendary per island.
So no one will want the normal uniques, and we end up with 5 vanity items that people make every effort to never part with, which is exactly what the whole needing repair system was designed to counter. I love the idea of truly legendary items, I just don't see how it would work when they represent exactly what the system was designed to avoid.