But I don't remember that being an issue with NeighborGoods. Maybe it was the community nature of it, that you really felt like you were borrowing from a neighbor, instead of just getting some free stuff to re-sell.
I never dealt with damage. I think actually IF I were charging per hour, I might care more, because then it feels like a business transaction. If I'm putting stuff up for free, then it's because I'm willing to lend to neighbors. (Obviously I'd feel different if someone broke my $400 drill press or something.)
I don't think we need all the tools that we owns, all the time, and if our neighbors can lend it, its a pleasure to do so. Damage can happens but at the end of the day, we're neighbors lending to each others so we can figure it out most of the time at least!