This is a clever, clean setup. I've seen a few of these sorts of thematic engines but few others have made me want to play them right away like this one. Sharp design and theme decisions. The poetry rules are great :)
Wounds: It seems like the effects of a wound go away after a seven hour rest, but does the wound remain? I assume a new wound merely replaces the old one in effect, so you have to sleep for seven hours again to shake off the new Setback penalties. After such a rest it feels like a given wound has sort of gone away, apart from roleplaying purposes maybe.
Since you only need to rest for 5 hours to fully regain stamina I might imply that you rest the full 7 to tend to a wound, otherwise it may open up again if you roll a 1 in a dire situation.
I would have liked it shown that fate coins act as a heal and don't increase stamina past the maximum, and that you just need to reroll any duplicate ability generation rolls, but I guess it's pretty clear that's the intent.
I think I might come up with a rule, though, where if you ever roll a duplicate ability you instead gain a follower with that ability (whose stamina is equal to your current stanzas (min 1), increasing with yours until they become a potential player character, but subject to morale checks equal to their stamina vs. 2d6 or something)
Thanks! This is fun.