Yeah, that can absolutely work with the right kind of players. But that's not everyone. A lot of gamers I've played with would just say neither and get mad.
Borrowing the terminology from the video linked up thread, there are theater kids and math kids. The theater kids would revel in that kind of choice, the math kids would rebel against that kind of choice. To me, the trouble with Daggerheart is it seems to want to split the difference. It's built on a solid theater-kid game foundation of PbtA, BitD, etc but has all the added math to also try to pull in the math kids. In my experience they are two separate and distinct groups with separate and distinct preferences that are not going to play well together.
Sure. That would just make the players who complained even more angry about the situation. Making it a quadruple whammy. Fail, cost or consequence, fear gain, and immediate fear spend to make things even worse. To be clear, I don't think this is necessarily a problem with the game or its design, more that certain kinds of players would absolutely hate this.