Readability is as subjective as it gets. Repetitions are bad, but I think the following cases are equally dubious in terms of readability:
var i = 10; // what's the point?
var a = new SomeLongType();
SomeLongType b = null; // cannot use var here, and the asymmetry looks bad
var c = Frobnicate(); // what's the type of c?
The latter is especially bad, just add more indirection to see the problem it in its full glory:
var foo = Frobnicate();
var bar = foo.Tweak();
var quux = bar.Confusticate(); // huh?
You can still leverage the IDE to know what the type of quux actually is, but readability went down a few notches IMHO.
I wasn't criticizing Anders Hejlsberg; for bad or for worse, whatever he writes is what the language is supposed to look like. If anything I was wondering if I missed some major point of var and being a Luddite for not adopting it that profusely.