In the current version its very hard to harm something like steel weapons/armor with anything short of adamantine or a megabeast. If you look at a steel kitchen knife in real life it will dull from something as soft as an apple or a cut of meat. What I suggest is that weapons slowly lose edge from use and armor may become dented/fractured, reducing their effectiveness. Steel would still last significantly longer than copper, but still wear down if left without maintenance. The current wear naming system (xitemx/xXitemXx) could be replaced with a series of adjectives. Honed, Sharp(excluded for blunt weapons or ranged), Blunted, Chipped, Bent, Broken(could still be used but would be highly ineffective, but perhaps a broken sword might have a very sharp jagged edge right before it becomes unusable?) [from order of best to worst] and Reinforced, Sturdy, Dented/ragged , Torn/Punctured, Disheveled [for armor/clothing]. Weapons could be sharpened after production with a whetstone or by a soldier in their spare time between spars or training. A novice smith might chip a sword when hammering the steel, but a master smith may hit it just right to where it already has a good edge after its made. Maybe even once it reaches the chipped stage, its past the point of no return and you cant re-sharpen it because a significant amount of material has been lost, but anything of blunted or higher can be sharpened. Maybe just to make it less frustrating, a steel sword can be blunted by hitting soft targets, but never be chipped by soft targets unless it hits something hard like iron armor or megabeast bone?