The thing is that if this was included for realism, the way it was implemented makes no sense. You can't exactly stop in the middle of a fight to resharpen or straighten a sword, and broken fittings, bent plates, or pierced armor would all require a smith to handle. These are almost all things that Geralt wouldn't be handling himself, and for those that he would, it would make more sense to just have a notification telling you to meditate sometime soon so he can tend to his equipment, or that the damage is too severe and he needs to visit a smith of the appropriate level for his gear.