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I think the whole "Fate's Favored is good (in specific scenarios), therefore it should be nerfed or removed entirely" is a little extreme. Fate's Favored can be better than a lot of traits, but only for specific characters or items. I've used it, but only on one or two characters who were built around it. There are a lot of traits that I use more often just because they're universally good. I can't really utilize Fate's Favored on every character, and even if I could, there are other things traits are good for that help flesh out characters in better ways.
Feats are the same way. There are definitely feats out there that are better than normal feats. Some are just really good, and work their way into my builds quite often. There are also hundreds of absolutely awful feats. That doesn't make me want to destroy the ones that are actually good.
People keep going back to this "traits are supposed to be half a feat," but I don't think that's a rule anywhere. It's barely even a guideline. You can look at traits like Reactionary or Deft Dodger and say, yes, that's equivalent to half a (specific) feat. But traits like Firebug are just as good as a feat -- it's equivalent to Weapon Focus if you're an alchemist. Actually it's better, because it works for all thrown splash weapons AND bombs. Armor Expert is something you can't even get with a feat. If you look at Muscle of the Society, that's again something you can't get with a feat, and it's better than a masterwork backpack at helping you carry things. Any of the "gain skill as class skill" traits are basically a +4 bonus, and many of those buff more than one skill. Extremely Fashionable is +1 to three different skills and makes one a class skill (another +3). That's comparable to full strength Skill Focus, with a little bit more spread, and no level restriction. I know I consider taking that trait every time I make a social character -- does that mean it needs to be removed?
And really, "half a feat" is meaningless when feats are all over the place. Some feats are like "If you have this, your character is amazing." Others are like "Well uh, once a day any time there's a full moon and your HP is exactly 0, you can get a +1 to perform (dance) checks." Yeah, Fate's Favored is better than some feats. But Hunter's Knack is better than "some feats," and it's one of the worst and most situational traits I know of.
There are other traits I flock to at every opportunity. Instead of trying to remove the ones that are actually good, maybe make less of them that are terrible?