I have no problem with repair being difficult to level, as it should be. The reward for having a high level repair skill is enough to justify the time and resources involved, even if to simply save material versus crafting a replacement. If you absolutely want to keep your enchants, you're better off using a vanilla anvil, but if you simply want the convenience of saving resources and time by repairing regular tools, MCMMO repair is immediately useful from level 0.
Iron is plenty abundant, so if you absolutely must use iron tools and armor for everything and can't bother to level repair to 70, I'm sure there will be people willing to do a free repair in exchange for the XP. To me this seems pretty inconvenient considering the difference in durability relative to the difference in abundance of material. Pretty sure I'm at or near repair level 10 after a casual weekend of playing, which is pretty good pace in my estimation. I wouldn't expect to be repairing diamond before the server is out of beta, and that's fine as starting from nothing with intentions of using diamonds for everything is impractical.
For what it's worth, my mining level is over 100, and I've only gone through 1-2 iron picks, and ~10% of the durability of a diamond pick for obsidian. The rest has all been done with stone picks which I've probably repaired a good 250-300 times now. The same amount of mining would have probably consumed somewhere around 6-8 stacks of iron ingots or 1-1/2 stacks of diamonds (guesstimating those numbers), and while I'l gladly upgrade when resources permit, using and repairing stone tools is obviously not a detriment to getting a good start. For reference, that amount of mining yielded somewhere around ten double chests of stone, but only perhaps 4 or 5 stacks of iron, and 9 diamonds, which may give perspective to what the obvious choice of tool is going to be.
Someone had indicated that they were initially only able to repair wooden tools, and if this is true I suspect it was a bug as I was able to repair stone tools from the very beginning, and saw nothing in /repair or any MCMMO help screens to state that a minimum level was required for stone repair, as gold, iron, and diamond clearly state what their minimum level requirements are set to.