The one thing I really don't like about destroying items while salvaging them is the lack of any leftover parts which could still have something to recycle from. Say if one has a +5 vamp mod, but also had +7 def against physical damage, you have to gamble for one of them and the rest goes to waste unless you used a perfect kit. This becomes a problem with full sets of armor as well when you trade mods to the next set but are forced to replace them. I think having busted weapons and armor pieces in inventory would make these options far better so you still have something to work with, but also could salvage what's left for materials.
Another thing I think would be useful is having the smiths offer total salvage of your gear. Say for 500g (or whatever is reasonable) you can have all mods from any item you need plus materials and if you want to pay a higher fee, you can have mods removed WITHOUT destroying the item. This is very useful if you wanted to have your gear re-customized without having to go through the hassle of farming parts or wrecking anything in the process of altering them.
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