No It's not the end of the ES world and I obviously still like Skyrim.
Why would it be so impossible to add back in? Are the perks and skills hard coded?
I put this thread in the Mod forum because it involves inquiries about adding a feature to the game through a mod because I was pretty confident the feature didn't exist.
It did make using armor and stuff a feature and I feel repairing was implemented better in Morrowind because objects seemed to degrade way to fast in Oblivion.
I guess the biggest problem would be to keep track of the condition of a specific piece of equipment. At least in Oblivion this would have been more or less impossible. I at least don't know how something like this could be achieved. The player can drop equipment, unequip equipment and he can have multiple pieces of the same equipment. Don't know how to keep track of the references for each piece of equipment and assign a permanent value to each piece so the condition value doesn't get lost as soon as the player unequips something.
A simple system where only the currently equipped equipment would degrade would most likely be possible (at least with a script extender), but in that case the player could simply circumvent equipment degradation by dropping or unequipping the equipment once and then putting it back on.
Perks are (most likely) not hardcoded, while skills will (again most likely, CK is not out yet after all) be hardcoded.