[MENTION=463]S'mon[/MENTION]: I actually think the DMG was very clear that you were playing in a narrativist space. It didn't say "narrativist" of course - the DMG was actually very careful to avoid gamer jargon and other traps and always defined terms before it used them - but it was clearly a narrativist space nevertheless. One of the first things it does is lay out player personalities - Actors, Explorers, Instigators, Power Gamers, Slayers, Storytellers, and Thinkers. And it discusses how to engage each of them, and elements of a story that will disengage each of them.
This is the MOST fundamental concept of narrativism I can imagine. A shared storyspace where each person is engaged and active within the game.
That's when D&D 4E tells you it's heavily narrativist. Page 8 it starts. Look at even the power gamers. The story that you're telling the power gamers is that they're winning D&D! It's a meta plot outside the game plot! (you tell them this through "bonus XP" rewards, offering them nifty magic items they want as adventure hooks, and designing certain encounters that show off their nifty tricks.) THEY TURNED POWER GAMING INTO A METANARRATIVE.
Did they perhaps have marketing problem? Well, maybe. I certainly think a few playtests could have smoothed some of this over. And there's no question they made very little effort, with certain powers, to focus on what was happening from a simulationist stance (that they later went back and fixed a lot of these issues was rather after-the-fact).
[MENTION=177]Umbran[/MENTION]: I think you're fairly close, but I think you're giving too little credit to the Gamist in this. The Gamist can grasp the mechanic. He identifies which elements of the story are important, figures out how many FATE points he wants to spend to have the best chance of accomplishing his results, and he does it.
The problem, for the gamist, is... that's it. There's no meat to the bones, from his perspective! Okay, sure there's a story. Maybe he even enjoys the story. But there's no game occuring! Facing down an angry troll is very similar to a complex social maneuvering. Yes, to the narrativist they're VASTLY different, but to the Gamist, they could not be more similar.
That's why the gamist gets a little disgusted with FUDGE/FATE after a while. To them it's remarkably shallow. To the narrativist it's blessedly simple (the mechanics do as little as humanly possible to get in the way of the story) but that's just not how a gamist sees it.
Is there something wrong with this? No. No there isn't. If the gamist isn't having fun, the gamist isn't having fun. Maybe the gamist even also enjoys narrativism, but Fate just leaves him feeling half-satisfied and he'd prefer a system that fed both halves.