On a personal level, I'm not a big fan of the different interaction modes at all. I would have preferred to handle this in another (non-classic) way. The challenge is we all have a slightly different vision of what our ideal Daggerfall looks and plays like, and there's only so many toggles we can put it before it becomes unwieldy. So copying classic behaviour is my usual go-to when implementing new features - then QoL improvements are eased in around the periphery with varying degrees of success.
Sometimes QoL improvements are clear and obvious like scrollbars in inventory window. The space is there for them, and DF even uses scrollbars elsewhere, so it was an easy choice to add them. But other times QoL improvements change the game slightly, and feedback is a way to identify which direction the wheel should turn next.
On a personal level, I very much prefer instant repairs (and magic repair enabled). The combination of delayed repairs and unrepairable magic items in classic .213 stressed out my younger self. I was more inclined to just replace a weapon with something that dropped rather than repair it or bother enchanting another one.
But you can also make the argument that delayed repairs and no magic repair are an intentional part of classic design. So longer term, it would be great to implement delayed repairs and add two new options - one to enable instant repairs, and one to enable magic repairs. I don't place any priority on that however, it's just one of those peripheral features that are more flavour than anything.
