Yeah, I've worn the finish a bit thin on the back of my Faded SG's neck.
There is one thing to think about if you do go for it - the Fadeds (or at least the ones I've handled) have not had their surfaces completely flattened like a guitar that was given a full finish.
My Explorer is pretty much "smooth" after this refinish, except from previous dings and the odd scratch I put in it (I decided to leave these as "character" rather than try to repair/fill and possibly mess up the whole thing!).
My Faded SG has a definite grainy feel. If I were to do my SG (I'm not going to, I like the cherry on the SG), I would personally live with this feel. I'd expect to probably lose some of the grainyness with the oiling, but I wouldn't be worried about eradicating it altogether.
I think, if I had Faded V, I would be considering an attack of some sort - mainly because the red looks a bit brighter or more pastel-like than I'd fancy. However, rather than stripping off the existing colour, there is another possibility - I found that the dye and oil goes over the existing finish quite well (I left a bit under the scratchplate). This would seriously darken that colour scheme...
EDIT: Dear oh dear, I'm talking like some sort of expert here... :roll:
Bear in mind I'm just a guy that lucked out on this over the last week or so... what I'm suggesting is what I'd be "prepared to experiment with next..." - at my own risk... Hopefully Wez or someone as experienced is vaguely monitoring what I'm saying here!! :lol: