I am ambivalent about hero points. I think they represent a useful tool most of the time, and generally increase the overall level of fun at the table. But I can also do without them, especially if we are aiming for something grim and grittier.And the slightly less tongue-in-cheek version of this is an otherwise RM-ish game that is supplemented by Fate/Hero/Action points that allow a player to "buy off" a consequence in combat, so as to preserve the player's conception of and/or desires for their PC.
By the way, I don't have a problem with systems that create what might be called emotional effects. You can be "miserable" because you have been on the road in the rain for 4 days eating soggy, worm ridden rations. Take a -2 on all the things. I just don't think it is the system's job to tell the player how to incorporate that sort of thing into their choices and role play. You can have the ever-happy gnome be "miserable" mechanically, but the player portray them as still singing all day because that is how they want their PC portrayed.
I have a special dislike for Morale checks forcing PCs to flee or whatever. That is not something anyone but the player should pick.