Fractional reserve banking type of things can be done with fungible items. Is there any change to bitcoin (or bitcoin style crypto) that would make fractional reserve banking or something else, impossible or harder to exist?
Yes, there is. Fractional reserve banking is a feature of the traditional banking system. If you strictly follow Bitcoin's revolutionary banking philosophy, this old feature will no longer work. Why? Simply because, with Bitcoin, your funds are under your sole control and ownership. You are your own bank with Bitcoin. No other person or institution has the access to your funds.
Fractional reserve banking is really a system which legally allows banking institutions to fool the people, to play with their money, and creates wealth out of it. If in the process they took too much risk and failed, they could simply declare bankruptcy and wait for the government to bail them out. The traditional banking system really sucks.