Kingkerry,
that's an interesting idea, and if implemented, could be used by an enemy to disrupt your econ. Suppose you bashed a wall then moved a few tiles over and bashed it again, then hit a house, always keeping the next damaged object in LOS. How far would that vil go before it forgot what it was originally doing?
Autorepair could be a useful tactic, for good or ill. The big deal would be having the repairer return to the original job. Presently, in AoK, they don't do that. You have to send them back to work.
I personally use a pair of villagers when there's intensive sea fighting, to pull ships off line and send them to repair, then back to sea to fight some more. It works well, since enemies tend to work on the damaged ships first, and the whole ones second. Pull the damaged ones out, repair them and set up a steady flow. It's a bother, but if you sink the enemy fleet and keep yours, you control the seas, and sometimes with a smaller fleet than you're fighting initially. Faster than replacing them, but I don't think it's more wood-economical. Oh, well, there's lots of trees in most maps. And wood gets cheap.