I actually kind of like the idea of ”sleeping it off” when you die too many times. I find the durability system to be annoying because of the cost to repair and not necessarily the need to go back to sacrament for literally one minute. However, it only really works if there are other things to do while you are in sacrament like selling loot and buying new stuff.
The good thing with repairing is that the smith is right next to the other vendors so the experience becomes smoother when you return to sacrament. If you would have to go to your house every time the tiredness bar fills up it feels a lot more like a chore I think. At that point why not just make repairing free instead? Well then the system has no real impact on gameplay and is only a mandatory break from playing the game.
Though I think the idea sounds a little interesting I dont like when systems forces the player to engage with them (beds, furniture and so on). This would be an example where players are forced to do just that and I actually think it would be detrimental to the game in the long run.
In my opinion dying in and of itself is actually punishing enough. A player knows if a boss is beatable or not after a few tries, some might keep bashing their head but most players would realize they need more levels and upgraded gear after a short while. The only problem with the current system is that it punishes bad players more than good players which is not inclusive, but it gives a player a good indication they need to get stronger. Other systems with actual negative consequenses are terrible for this type of game in my opinion because they make the player weaker or arbitrarily halts progress.
The current system atleast favors the realism in the game. If you bite off more than you can chew with a tough boss, take some time to level up and try again and in the process make money so that repairing isn’t really a problem. In the end game it’s tedious sure but if you hate it so much just get indestructible on all your gear.