The real problem, as I see it, is damaging the weapons in a way that is consistent with how everything else is damaged (i.e., qualitative over quantitative information). Oblivion (and probably Morrowwind, never played it) had a system that I thought was incredibly silly, and when it was continued into Fallout, it really started to bug me (because that game at least acknowledged things like separate limb damage).
For example, you walk in a cave, and an old man hands you a wooden sword. When you pull up that sword in your inventory, it should just say Wooden Sword. If you use it to stab or bash organics (can wooden swords slice well at all?) the sword should remain in good condition for a long period of time.
Say you run up against an armored foe. If you try to stab him, you might deal some damage (although it is doubtful you would pierce anything), and the sword would take some damage too (and maybe even your arm goes numb). Now that you pull up your sword in your inventory, it might still say Wooden Sword, but in light grey or yellow to indicate that it has taken some damage. If you inspect the sword, it should explicitly state that the tip is damaged. Not the edge, not the hilt, not whatever parts a sword buff would name off. If you tried to again stab with this weapon, it should further damage the tip. Maybe you swing so hard and wildly that it splinters and breaks. Even so, you would still be left with a slightly useful weapon.
Lots of fantasy stories involve weapons breaking or a broken weapon being used to kill someone. If weapons were treated with the same care and attention as current body plans, we could benefit from realistic weapon damage and the ability to mod in unique weapons like tridents, or chainsaws, or whatever you want.
The biggest issue I see is repair. Fallout required that you used an identical or similar item, which made some sense. Unless your player is a smith, and happens to carry an anvil, tongs, and whatever else with him, reforging a sword should not be something you do on-the-go. This is especially important if an artifact weapon were to break - you would have to quest to find the pieces, and then to find someone who can reforge it (or tell you how to reforge it).
TL;DR: Something like "45/50 Condition" would be stupid; a more detailed system of weapon/armor damage would be a sensible and purposeful addition.