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Re-Think Again....
Ok, let's continue this line of thinking. Say a short occurs anywhere after the fuse and the fuse blows. There was obviously a very short duration of high (>30 amp) current causing the fuse to blow, which it did. No damage done so far. Now the generator is trying to supply the fault current, but it can only put out maybe 20 amps maximum. So the wiring is NOT subjected to gross overload, and the fault quickly drags down the voltage so the motor quits due to no ignition and the generator no longer puts out anything. Excitement over.
Now let's see what happens without the fuse. A short now can draw massive amounts of current out of the battery (like the 100 amps starting current). Now is when your wiring harness becomes the next "fuse" and real fire and damage occur. Note that this occurs whether the motor is running or not.
I'm leaving my fuse in place, thank you.