Item repair

Item Repair allows players to repair damaged Tools or Items by combining them on a Crafting grid. Items can be placed anywhere on the crafting grid. The two weapons/tools you will be repairing must be of the same type and same material for it to work. The health of the item that is repaired depends on the amount of health left in the two used items.

One could argue that this is useless, and really only serves to save space rather than renew valuable items, as most tools are used one at a time, but it's NOT useless. When you combine two tools, the product will have slightly more uses than the sum of the two original tools. Notch confirmed this mechanism on his twitter. The algorithm is currently unknown.