+1 I like it.
But not for equipment that already exists or that we own, it would be really annoying to have paid for something and now it works differently.
For a new rarity, such as spirit, arcane, mythic, etc.
Those gear and weapons could be "breakable rarities" and maybe recycle some old but really stronger proc, they could compete with the existing ones, because they wouldn't be really profitable, and you would have to strategically think about where to use them so they don't go to waste.
It would serve to relaunch old items maybe too.
It would also be better if it costs only gold, or some repair pack, craftable with existing items and gold.