Let’s go a bit more constructive.
1/ The feature itself is very nice. I like the idea that I can see (literally) when my clothes or armour is broken instead of seeing an abstract number of the armour or clothing ‘health’.
2/ The game mechanics in the current state leads to a certain problem, when almost everyone has badly broken clothes and dirty armour which is highly unrealistic for citizens, monks, and even villagers.
Possible solution:
I have an idea of creating a mod that could help to amend the problem. Here is my reasoning. The clothing and armour of the randomly encountered NPCs is never in perfect condition. In fact, it is normally in very poor condition. Therefore, it is set to spawn in this state. I think the same can be true about the consistent NPCs: their clothing and armour is set to spawn in the condition we see it in. This fact is somewhat confirmed by the observation that their clothing doesn’t deteriorate over time (it only get’s dirtier).
BUT I NEED HELP!
My question is here: https://forums.nexusmods.com/index.php?/topic/6872982-what-files-store-data-of-items-health-of-npcs/
Briefly, I don’t know what files store the info about the condition which NPCs apparel spawns in and I couldn’t find this (these?) file(s) by exploring the pak-archives. There are some files that point to other files that seem to contain inventory sets, although they are not even nearly numerous enough to cover all the NPCs. In any case, these files don’t seem to specify the initial condition of the items directly. Unfortunately, my question on Nexus still remains unanswered, because most of the players look to be obsessed with adding new ‘cool’ stuff like more surcoats and caparisons from their favourite pet movies.