Hussar
Legend
Honestly? I find this works best with new players who haven't been taught that having any player side authority is a bad thing. They are far more creative and willing to engage. If you start out this way, it works fantastic.Though I find Hussar's way interesting, I must admit that this must be done with a specific kind of players with a very specific mindset that is far from common. I would not do this approach with total noobs in RPGs...
Edit: Damn the autocorrector. These were made by the devil I am sure. If I ever get my hands on the imp responsible for these...
Now, I'm going to go back into MY OPINION here, and this is not an attack, despite how people are reacting to what I'm saying.
I find that in trad play, players are treated as untrustable. You said it yourself that this style of play would lead to abuse, thus, we need to keep authority in the DM to avoid abuse. Well, if you start from that position, I find that it becomes a self-fulfilling prophesy. You don't trust the players to have authority so, they will do anything they can with what little authority they actually do have, if for no other reasons than to test the limits of that authority.
OTOH, if you start from the point where the players are being specifically entrusted, and any good or bad results are entirely their responsibility, most players will step up and engage because then it's not about fighting authority, but rather working cooperatively.