That makes sense mechanically, but my experience thus far is that while the mechanics are great for storytelling, they suck for player satisfaction.
Even "leveling" in fate is decided upon by the GM, which further leaves players in the dark on how their character is actually advancing.
I can imagine, that it is unsatisfying, if you are used to get a sword of ogre decapitation and the likes. More and more, I find myself understanding (or at least I believe I do) the way of Fate. I think one of the most powerful rewards is a strong story hook for what is to come, which requires a change in style of most players (and I'm including myself there, too). You are, in fact, rewarding your players with more trouble, something that is unthinkable in most other games.
As far as levelling is concerned, and I believe that goes for rewards and loot as well, players are encouraged to chime in. Do you think killing your first RCV was somewhat life changing for you character, but the GM is treating it like a mook? Talk about it, maybe a minor milestone is appropriate, but the GM simply didn't think about it, because she wanted to go on with the story. You think your character would take the one gold coin from the treasure that is cursed? Propose it to the table, if the group thinks it is fitting, and it could lead to a new campaign, go for it.
I think Fate takes a lot of the work from the GM and gives it into the players hands. Not many players (and again, I have to include myself there) are used to having that kind of influence on the game if they are not GMing.