I enjoy weapon degradation where it is appropriate, in Fallout, yes, why? Because the world is scrapping together advanced weapons with tools and other possibly already failing parts from other weapons.
I enjoy it in, Sword of the Stars the Pit, where one of the monster is a living cell made of what equates to acid, where your weapons and armor take damage from them if they attack you because they are made of acid.
I would not enjoy it in Fantasy RPGs, where weapons were usually made pretty solid, considering many of them were basically hunks of metal. MAYBE armor, if I am fighting demons, dragons and the like. Because I would imagine that my armor needs to be reforged after being burned to a crisp, then cooled and then burned again over and over.
TL;DR - Good sometimes, bad others, depends on the context.