Drama aside:
My considered opinion is that this is one area in which Notch/Jeb have favoured "realism" (such as it is) over gameplay. Tools don't last long enough. I'd say the current durability of diamond tools should be the actual durability of iron tools, and so on.
In the absence of a bukkit plug-in that changes durability (which I understand, there isn't one) I support the Toolshed/Armoury for this reason alone.
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