Problem: After every battle you have from one type of gear up to 8 different loom states. Not only does this make icons unbelievable small, but also when you run out of small stacks you always need to switch to the next stack etc. and not to forget about not being able to use some stuff at all because of the ongoing problem that when you have too much gear in one row you wouldn't be able to even choose it.
Solution: Those places where you can buy loomed gear also would offer a Black Smith Service which would allow you to upgrade the damaged gear upto the loom level available at that place. You then would need to pay a fee % of the original price depending on how many loom level you would like to upgrade it and on discount.
So what you would see afterwards, is that gear will be transported back to repair it and get it battle ready again and not just sell or waist it. Armies will more often just have a clean pool of equipment easily accessible, and to hell with that mess you have to sort through all these things to see if you haven't missed a position and wut not enough shields ...