Did you do any hardcore crafting with the pouches BEFORE you got the large/giant pouches? I want to say it's only your highest pouch that degrade, but of course, look at my RC level. I was RC-ing last night, but only have the RC lvl to use a large (not a giant, yet). I had the large, med, and small in tow. At one point in time the large decayed. I paid the 9K to repair it and within 2 more trips, the medium decayed (the large was still OK from being repaired). I can't remember if the large was full when the medium decayed or not, but the net result was an intact large, a decayed medium, and an intact small. I somehow managed to 'lose' my decayed medium while standing in front of Wizard K (imagine the luck), and got it repaired by getting a new one, but he will not repair mediums (or smalls). I had also always thought that only the largest pouch in your inventory decayed, but last evening showed that to be incorrect.