I'll chime in on replacement, too. I broke a hose and went to a local hardware store. They had the identical hose on a huge reel with a few hundred feet. I bought what I needed and just replaced the hose. Rinse it first to get rid of the taste, though. Eyeeew. Wish I had.

The issue with fixing a hole is whether your fix fails when you really, really need the hose to work. The second issue is whether your fix causes nasty agents to get loose into your water stream - glue from a patch, tape, or other repair; chemicals freed by heat to the plastic.