I think that's a fair perception. Often when an update breaks something, it's because of upstream breaking compatibility (foo version 1.9 is subtly incompatible with databases saved by foo version 1.8), but Fedora just doesn't have the manpower to verify all new upstream versions, nor to carefully backport security fixes to foo 1.8 as Debian would.
A reinstall every 12 months is okay, for many applications (IMHO you should configure your server so it can be reinstalled from scratch quickly in any case) but day-to-day breakage caused by seemingly innocuous package updates is not. And while I am happy to keep my server configuration under version control so I can reinstall it, nobody wants to bother with that stuff for their personal workstation.
That said, 99% of the time 'yum update' works just fine, perhaps with an Apache restart needed in the worst case.