I think giving 0 points on a fall is a bit harsh and would discourage, esp. the men to attempt quads. I like that the rule has raised the level of diificulty. Thats what makes figure skating a sport. I watched Evans free program in Vancouver yesterday and honestly i was really bored.
The key to combating what you've raised as a concern is this:
Skaters who DO complete the difficult elements are rewarded. It's about risk/reward, an important aspect of sport. I know that the sports are not the same... but I'm a golfer. Attempting a risky shot can have great rewards, or it can lead to severe misfortune. High risk elements should have a great reward, but right now I don't think there is sufficient penalty for failure.
In skating, if one's competition is successfully performing high-risk elements... there is the incentive to train and master them to keep up with their base value. But there should not be a great (even a good) reward for failure.
One man's opinion, of course.