Though this is I think an issue with all heroes, it is especially problematic with the dwarf character owing to his low movement speed.
He has a maximum fatigue of 4 and a movement speed of 3. So he actually moves faster by using a move action (3 spaces), spending fatigue to move 4, then resting (getting rid of all the fatigue so he can do it again next turn) than he would by moving twice (3+3 spaces, and equally ending the turn with no fatigue). The added fact that those fatigue moves also avoid any risk of being hit by many trap cards makes this seem like a major oversight and exploit to me.
Fatigueing movement strikes me as an ability that should be used to get an extra occasional burst of speed that you can only do every now and then, rather than an ability you use constantly because it's actually more effective than movement actions and makes you safer from traps.
Am I missing something here?
My house rule resolution of this is to halve the fatigue recovery rate of the rest action, so a hero only discards fatigue tokens up to half (round up) of their maximum fatigue. In the above example, he would discard 2 fatigue for each rest action. Move actions then become the primary way of moving, with fatigue offering only an extra burst of speed which takes more time to recover from than the time that is saved using it.