So, I tried this system with some volunteers. It went great. the hardest thing was to get the players to think of other solutions then fight, since fight in this system can, and will, go bad. The players chose to fight a bear, their PCs got somewhat mauled. Then again, the bear's defeat was sweeter then in any D&D clone.
As far as minimalist rulesets go, this one works well, however the one small nitpick I have is that there are no rules for healing. For example - can exhaustion points be removed by sleeping on a bench, or do you need at least a week in luxurious bedroom?