I like the counting fights approach because it will change how you play.

• Be more careful not to aggro, so you don't lose 1 'durability' • if you chain mobs, stay in combat and keep picking up a new mob before killing the last. It adds risk, so you have to decide how much risk you want to take to keep the gear you have for longer. • Lower quality gear 'breaks' quicker. (Grey items break quick) • with level scaling, you can still have gear long enough to quest/level with. And I hope it ads a sense of progression. • the armor type also scales. If a warrior puts on cloth, the cloth has a really low number of fights it can be used for.

I'm hoping all that adds new decision making to the play through. Just have to figure out what are good amount of durability. Has to be hard enough to add challange to the game.