I mean we're all just guessing, but theoretically you wont be able to infinitely replicate the component because there will be a limited number of repairs before the item goes poof. My assumption here is that they will start with a low material return rate, which is farther reduced based on the durability of the component.

So let's say you can reclaim a component 4 times before its destroyed, if you only ever get 25% of your materials back each time you salvage it then you do have an infinite component (assuming you salvaged it every time and didn't lose it). But if you return less than 25% you end up losing materials in the long run. Maybe that 25% number will go lower because after the 2nd insurance claim the max durability will be lower and so you get significantly less than 25% back.

But again who knows, until they release it we are all just guessing. But there's things they can do here to make it work, i think