Frili:
But I guess my question is: What makes Fate, Fate? Are it aspects, is it the fate point economy? Something else? Thoughts?
For me, all it comes down to is the ability of players to contribute to the reality of the game.
I make all games I play, under any system, as Fate-like as I can, without fate points or explicit aspects. I'm not certain, but I assume a lot of Fate arose out of the designers, in their own games, getting tired of exchanges like
Player: "I'm a dwarf and we all know that dwarves are hardy, and mine comes from the Carbine Mountains which are super rough. So, can I do [thing that requires extreme hardiness]?"
GM: "Uh, I guess so, makes sense." (Best case. Worst case being an argument or a debate or a pointless series of rolls.)
In Fate, it would be much more acceptable for the player simply to say "I have the aspect 'Hardy Dwarf from the Carbide Mountains' so [thing that requires extreme hardiness] is a cinch. What next?"
Whether or not that was the actual sort of thing that spurred the development of Fate, it's the approach Fate has inspired me to take in my games. If a player tells me that something about their character means that they should get some advantage, then they do. If it makes sense to them, then it makes sense to me and we go with it. I was surprised to find that they'd actually bring down
bad things on themselves for no real advantage, based on what they'd established before.
I guess what it comes down to is letting flavor text (including what players invent, or what the table commonly understands to be true) matter as much or more than the mechanics. The fate point economy, I feel, just keeps the highly creative people from running away with the game, but it's not strictly necessary, and from what I hear some veterans of the game don't even really move points around when they play, they just tend to go with what feels right, in terms of both good and bad things for the characters and the pacing.