Since we've discovered that holdings do block dynasty cards from being placed I would say that it is fair trade of given the number of cards we have seen that can flip face down dynasty cards allowing more cards to be purchased with fate.
Also an additional +1/+2 on a province that can't be bowed (though we have not heard if being bowed removes your contribution to your side's total and/or removed your ability to play actions in that character) a nd that won't be removed due to lack of fate seems a more than generous trade off not even accounting for the actions they provide. This could also mean that the characters you are bringing in are more likely going to want to have more fate on them.
Think about Lion running two provinces with staging ground, able to possibly put out 6 characters (depending on the number of cheap Lion clan characters and holding % in deck) from their dynasty deck in a turn. Now they will only be around that turn since you spent all your fate but that's certainly a thing you could do.
Still need to know what happens to holdings when a province breaks. I'm guessing they are discarded and you can't play any holdings on broken provinces.