The buttons in that area are shared with all functions (Buy, Sell, Repair, Reforge, Restore, Buy Back, etc.) in the Merchant window. So if you were to hide or remove the button, it would affect how you interact with the other tabs.
The window could be modified in a way that checks to see which tab is visible, and hides the Repair button only when the Repair tab is focused. But that's a lot of software and it would need to be tested thoroughly. A simpler solution might be to change the outline of the Repair button to a different color as a visual reminder not to click it.
Copy eq2ui_inventory_merchant.xml into your custom UI folder, and scroll down to about line 37. You'll see four <Button> lines, the first one being used for Repair. Add Color="#FF0000" into that line to change the button outline to red and give that a try. It might be all you need.
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