I don't have problems with there being a "Fear" effect, I only have a problem with it taking PLAYER CHARACTERS out of the combat. So I am much happier with the effect making you less effective in battle because of how "Shaken" or "Rattled" you are. Plus I have no problems with having a difference between PC's and NPC's. NPC's run in fear while PC's are only Shaken, or similar.
Warriors who run from battle only do so when they are young and green enough not to realize that staying at their companions side increases their chances of success and survival. Thats why trained people are far less likely to run, they are committed not only to winning, but their friends next to them, so even though it might be better for them as an individual to run and survive, as a group, and as a person committed to achieving the stated goal, they will not run unless all of his friends/companions decide to run, then its called a "Retreat", which can be well organized, or can be complete chaos.
So I much prefer it when the rules for Fear allow the player to keep his PC where he wishes to, and only suffer some penalties until he gets his fear under complete control again.
Same with Charm, etc... Especially lower level stuff, like Charm Person. They should not turn a PC into a "puppet". It should only allow you to favorably influence someone, not make them attack their friends (unless the PC has been secretly having such thoughts) or to hand over their weapons and other loot without a thought (unless the PC has been played as very generous and giving), only higher level spells, like 5th level and higher should turn PC's into puppets.
Charm Person is horribly easy to abuse. Do you want to know how many Merchants I "Charmed" into becoming a business partner with me and investing lots of gold into it? Do you want to know how rich my third level PC became from doing this? IT was totally destroying the "logic" of the game world, so my DM and I brainstormed a lot of non magical procedures that would keep rich merchants from being scammed in these kinds of ways. Plus we came up with situations where they would get another save, often with good bonus', anytime they were being persuaded to do something very contrary to what would be deemed as their "normal" behaviors. It added a good bit of complexity to things, but it kept "Charm Person" from being abused and destroying merchant houses left and right.
I have no idea how 4E rules on this, I only played 4E for a couple of months going from first to third level, so I would have to look up the rules to remind myself.