As annoying as the weapon degradation was, it was a big part of the gameplay loop. Without the constant loss of weapons, the gameplay loop just isn't there.
That said, while I'm pretty sure that it'll be back in the sequel, I hope that it's dropped outside of BotW games. Also, it could use a proper condition display so the player can keep better track of how close they are to breaking.
I haven't actually played Majora's Mask, but I've had fun with transformation systems in other games, so I'd like to see something like that return.