While morph-o-tool goes some way to help with the item issue, there are some key ones (notably the IE hammer and IC2 wrench, last time I checked) that don't work with it, making it of somewhat limited use.
I suspect the requirement of using durability poses a problem; many wrenches never lose durability during normal use.
I think it takes 'leaving it outside in the rain for five seasons' to cause most hammers and wrenches to lose durability. (That's it - make it possible to restore durability to wrenches with a bucket of oil.)
Screwdrivers are another story (especially the Phillips head ones you need for case openings).