Having thought about it some more, the other thing that I like about this mechanic is that it appears to be a properly defined hook for modules. You never really know until you build a few modules, but consider these options:
A. Ultra simple, flat - already discussed, you
collapse the options into a flat bonus to damage and/or always just roll extra damage.
B. Maneuver hook - you have a short list of known maneuvers that you can activate with each "token", perhaps flavoring the token return as stamina.
C. 4E powers hook - you have a short list of known powers that you can use at-will or less often, that happens to work out to match your tokens accumulated, but these are fixed each day.
D. Trade for feats hook - there are some special fighter feats that do improved disarms, improved bull rush, etc. that you can purchase at character build time, and then they become fixed for you, but useable each round at will.
E. Ki modules - perhaps a lot like Maneuvers, but flavored as Ki instead of stamina, and thus on a different schedule of gaining and using tokens.
That is what makes this different mechanically than trading damage for some other option--it's in the proper place for a hook. Trading damage is something that you kludge onto an existing system. Like all kludges, it won't always work well. But if you build a system to have some [piece of damage that scales appropriately with level and system] and then abstract that out into a token, you can turn it back into damage or something else.
It's exactly the same kind of design that makes the electrical outlet and the appliance plug the point of swapping--as opposed to say hot-wiring your lamp every time you want to move it to another room or having to go to the breaker box to do the same thing. Swapping out damage for effects is a little too much like hot-wiring the lamp. This does affect player psychology, but then anything in a slightly wrong spot has similar effects on people. However people react to it initially, getting things designed into the right spot has tangible benefits.
