I have a fuse on my system as mentioned above. It doesn't seem to popular on this forum though. In my background in electronics, you are taught to always fuse a circuit - so I guess I'm hard-headed in that sense.
Anyway, from what I've found around the 'net, I can't find any other referenses to fusing a brushless controller being bad, unless you are using a BEC as stated here:
RC Power FAQ
I'm still looking...after all, my polys did cost more than my controller, and the fuse will protect them in the event of catastrophic failure.
Perhaps, as mentioned in the link above, the issue being mentioned with breaking generating high voltages is due to people fusing between the controller and motor instead of battery and controller?
Serum - did you get this info "from the horses mouth" or other bad experience? I'll take the fuse out in a heartbeat if I can find some good evidence.