As a GM I am always looking at rules and how I might apply them in a game. Looking at the literal rainbow of genre possibilities with FAE, one question I had was about equipment. This was one part of FAE I found to be really troubling and it took a little mental gymnastics to get my head wrapped around how to manage equipment and how to do it in a useful and appropriate way.
In general, and in most situations, I would ignore the trappings of equipment. This is a drastic and hard thing to do as many games make the tracking of equipment not only important but mandatory.
Once you do break free, it becomes one of those "Aha!" moments.
*An example of using torches and Fate Points.*
Why track the number of torches your party has? Simply burn a Fate Point and tell the players their last torch is about to die. Drop a little Situation Aspect on the board. If a character has an aspect such as Afraid of the Dark or something this could be loads of fun (you could also drop the FP and declare a compel on the player with that aspect....wow, that would suck!). If you want to up the ante a little, have some not-so-friendly goblins pop in and use the heck out of the aspect you just threw down. Tell the players the goblins have infravision and the failing torch makes it easier for them to see, they get a +2. If a character has infravision they could call on the Situation Aspect as well, but those without? Nope, unless they can be creative somehow.
Side note - Situation Aspects are awesome. They inherently add atmosphere and vision to a scenario.
If a player wants to remove the Situation Aspect they could in turn burn a FP to suddenly discover a stash of torches, maybe remember they had packed extra in their bag, or even use that Ascension Mage of the Bright Calling aspect and cast a good old fashion light spell. For me as a GM, this works perfect. I get to manipulate the situation in a way that feels right and builds the story but it also plays upon the FP management, which I feel is an important part of the game. Sometimes the mismanagement of your FP could make or break you in a big moment.
How have you used equipment in your FAE games? What worked and what did not?