Yeah, I see no problem with mondo fate points. It's fun and all when someone does something stupid and charges off after something all by themselves and gets their leg cut off for it...but it sucks to loose a cool character from your story and something that the player enjoys, because of a bad call.
That being said, sometimes they irritate me as a GM...they always use them when I really want to slap them for something and they manage to skirt away from it.
I think after our last session, my players realize how difficult their current mission is goign to be, and as such, are going to have to hoard their fate points and only use them when they really, REALLY need 'em.