i think the trouble is not the FATE, but the exp gain from dungeon and leves. (people tend to forget leves, or use it only for craft/gathering)
people do fate, why? because is the best ratio exp/time, better you get gils and seal if you are good enough.
when a dungeon can end without gaining any gils or loot. (the rng can be a b.... sometimes)
leves don't give enough exp or gils, without forget they are limited.

we know the 2.1 will bring dailies, but they really need to think to how balance the gain of exp/gil from dungeon and leves, maybe when they will have do this, the fate will be less zerg.