The system is designed so that the players can influence the events of the game at the cost of increasing difficultly. For instance, every character has a High Concept, such as "Best swordsman in the kingdom". This can be used by the player in many ways, such as celebrity notice, justifying related skills, background, etc. but the game master can also invoke it for things like bitter rivalry, getting conscripted or not being able to go incognito.
As such, the system can work at many different levels. One popular setting has characters as magical cats, another as post-human cyborgs. And it all works.
For a list of various settings: https://www.evilhat.com/home/fate-worlds-and-adventures/
Part of it has to feel like the player to feel like there are fair predictable rules that the game adheres to. Yes, the DM has to step in to make sure the game feels good, but the extra work to combat game mechanics doesn't feel like a good use of the DM's time.
Your solution is a good, creative one but I don't like that poor mechanics got us here.
But like with any other rules I've seen - it requires some discipline and agreement to not stray too far into the rules part. Rules are just guidelines that help avoid the worst of: "Bang! Bang! You're dead!" ; "No, I'm not! You missed!"...
No rpg rules are complete enough to form a full simulation - any attempt to do so will likely sap fun out of the game. They're just a helpful frame of reference.
1. You don't want the medieval + magic world and want to explore other timelines. Maybe futuristic, Star Wars etc.
2. You don't like the mechanics. Maybe the game system complexity slows you down or else there is some weird arbitrage opportunity that messes up the incentives. (Let's spend the whole game killing orc babies to build up XP instead of solving the clues and then just beat up the bad guy at the end).
Do people have good recommendations for substitutes that solves #2?