I guess this is one of the few things I'm going to be a grognard about. I really like Identify having a high cost. There are many times that I've actually thought that it's to easy as it is.
It's just fun to have an item that you know is magic, but don't know what it does. Good old fashioned mystery and suspence. Leads to a lot of excitement when you are in the middle of a dungeon crawl and have run out of pearls. Does this item slice through enemies like butter, or will it curse me? Only one was to find out!
I do not like the idea of identifying something virtually for free, doubly so if it can be done an infinite number of times per day. The only way I can really see being pleased with an option like this is if the casting time was something like 1 day instead of 1 hour.