Without sifting through all the posts I'm sure some have requested it be scrapped altogether, or have given ideas to change how it works. Well the following is my idea on how it could work.
I think the whole durability system is a bit unrefined. What's the purpose of it anyways? All I see it accomplishing is a bit of a gold sync. Most of the time it doesn't even detract you from playing the game, when you die and the gold icons appear on your screen, before you head back out killing you make a quick stop to repair. Myself, unless I've died several times in a row this is generally accomplished once every trip back to sell my loot. I don't think about it otherwise.
For it to play any effective part in the game the durability system itself needs to be reanalyzed.
It shouldn't go from perfectly functional, to warning of imminent failure, to failure. When durability goes down your equipment's effectiveness should go down with it in a scaling fashion.
There's a couple ways of doing it.
1. A 1% loss in durability effects your equipment's efficiency by 1% (not a big fan of this idea, as your equipment would rarely stay at 100% efficiency, and that would really suck).
2. At certain percentages of durability loss your item looses effectiveness. So at say 80/100, it will then suffer it's first drop in efficiency (doesn't have to be a 1:1 ratio, 80/100 could mean 5% deficiency of your item. *Numbers are just given as an example, balancing would need to be tested.
So long as the numbers are balanced so it doesn't feel like you have to port to town to repair every 5 minutes just to stay at 100%, but actually forces you to pay attention to the durability of an item. Seriously who actually looks at an item's durability before deciding to use it? I couldn't even list you off a single item's durability off the top of my head that i'm wearing.
I think in a system like this there should be more loss for "usage" of the item than there is now, the set 10% for death could remain, but I also think repairs should cost less. In fact I personally think repairs should be free, from a story line perspective you're saving the universe! people should be happy to repair your equipment for you
With a system like this in place it'd open the door for another mechanic. "Improving durability". Which could be done through the blacksmith, people have suggested before being able to upgrade your items at the blacksmith, but I'm sure Blizzard would find it extremely difficult to balance actual item upgrades. But Durability is not a critical stat (even in the above mentioned idea).
So an "upgrade" durability component would be far easier to implement. They can get another gold sync out of it (by making progressive upgrades more and more expensive), use current crafting material, or to reach the highest level of upgrade require some rare components, either from mobs or events like the Infernal machine (and there's the time sink).
Again the system shouldn't be created so you feel it absolutely necessary to upgrade any of your equipment, but it can be a side goal to improve your game play by reducing the minor inconvenience of going to town to repair all the time, just to stay at 100% efficiency.
It could also add more value to items sold on the AH, 2 similar items being sold, one with no durability upgrade, and 1 with an additional 200/200 on top of it, could be more appealing to the buyer if durability effected your game play more than it does now.
And then the items with "No durability Loss" would have significantly more value (especially those legendaries and set pieces where you feel it would have been a great item if not for the No durability Loss stat.
On a side note, if a scaling system like this were implemented, I'd like a better way of monitoring it than opening up the inventory and reading off all the pieces numbers. That suit of yellow equipment that appears on your screen would be far more usefull if it was something you can toggle on or off. And have the colours be more of a gradient as well, going from your typical green-yellow-red, per item, so it will tell you which piece of equipment is failing, I might not care as much about a shoulder as I would my primary weapon or amulet.