Some say yes, some say no. If not, why not? In a game entirely about crafting, having items wear out would be a great thing for the player market and economy later in the game especially when items are mass produced and are sitting around waiting to be used. I'm not too fond of the idea of an axe lasting forever, because as you know, nothing does and it would stop items simply stockpiling and sitting around doing nothing.

Supply and demand would be a much better and interesting thing with item degradation. I always liked this feature in Dark Age of Camelot and it's rarely seen, it keeps the market busy.