Autrepair is fine. It doesn't affect battles, and it happens rather slowly (perhaps it needs to happen more slowly).
It saves players the effort of having to repair their units after every battle.
I believe there was a much longer thread discussing autorepair a while ago...
I think it's fine the way it is - as in, it requires micromanagement to blow up on time. Fine control is what micromanagement is all about ... even in death.