Sorry, I missed one important step in explaining my thinking.
Instead of damage being 1 + Nudges + equipment, it would be Outcome + Equipment with Nudges adding the benefits you would normally get from Nudges elsewhere in the system, like extra dice. These could be added to either the next rounds actions (meaning a strong attack this round will carry over as momentum for the next round) or to the dice left in my current pool so they could be applied defensively for the remainder of this round. With 3 or more Nudges, you could instead add a die to all of your allies' pools or catch a beat.
The base damage would range from 1 + equipment for a grazing hit up to 5 + equipment for a more solid hit. Heroes and villains will be unlikely to die in one hit while extras could still be quickly dispatched.
A Feruchemist who "hulks out" could increase his Outcome, and thus his damage, up to a maximum of 6. All of those extra nudges could be applied to his future dice pools, which would have the effect of massive feruchemical bursts rapidly tapering off the next action or two.
For an example let me use Damosi, the sample character:
Damosi declares an attack and sets aside 4 dice into his Action Dice area. (He has no weapons, nor traits which would increase this). It is likely that he will be going after his opponent with only 4 dice, so when he gets attacked, lets assume he rolls 2 and taps 8 points to roll 10 dice. Its toss-up who will win, but the attack won't likely disable Damosi, even if it hits. Then Damosi gets to counter attack.
Using the Current system:
Damosi rolls his remaining 2 dice and taps 30 more. His attack pool is 32 dice which becomes 10 + 22 Nudges. Unless his opponent somehow kept back 10 dice to defend it is more likely than not that Damosi will hit and if he hits will be doing at least 23 damage even if he did not generate a single other Nudge on his roll.
Using the proposed modification:
Damosi rolls his 2 remaining dice and taps 30 more. He wants to ensure he hits and gain some initiative so he puts 20 towards his pool, the last 10 goes towards increasing his outcome. His attack pool of 22 becomes 10 + 12 Nudges. As before, unless his opponent somehow attacked and kept 10 Defense Dice, Damosi is likely going to his. With the hit, you determine his Outcome (his result - his opponent's Result) and add 1 for tapping 10 points towards Outcome. The 12 Nudges can then be used for what Nudges are normally used for, such as adding dice to his next action.
Next round, he declares his attack and his Action Dice pool becomes 16 (4 from Physique + 12 Nudges from last action), which mean he will likely go first in that round.