Fate Points in GURPS (and games in general)

[apoc527]

I'd like to start a discussion about the merits and flaws of a "Fate Point" concept in GURPS and games in general. Many games make use of the idea--some kind of immaterial, insubstantial "heroic" quality that makes PCs more likely to survive combat compared to "lesser" individuals.

In GURPS, I implemented them in my supposedly non-cinematic game by allowing PCs to purchase "Fate Points" at the cost of 2 character points, and to then use that Fate Point as described in Flesh Wounds and Influencing Success from the Basic Set.

To be honest, the mechanic is somewhat disappointing me. The idea of Fate Points is to help prevent random PC death from mere bad luck. The effect of Fate Points has been to reduce combat in GURPS from something that's actually threatening to an experience that you know you can survive as long as you've kept enough CP in reserve AND don't get too many times. Since bad guys don't get Fate Points (yet), there are few cases where a PC has been in danger more than once in a single combat. This is especially true when the PCs use their "ambush and snipe" tactics (which is fine--those are good tactics!).

I'm wondering how people implement Fate Points in their games, and if so, what kind of Fate Point mechanics are being used.

Also, are Fate Points really a good idea or do they lead to artificially reduction in combat lethality, thus altering the mood of the game?