I might take a minor philosophical issue with the idea of swap returns depending on whether the trader is profiting or not - it makes it unpredictable what rate I'd actually be getting.

 Part of the appeal of swaps for me is the part where I don't need to care too much about what the price is doing, because once the terms are agreed my return isn't dependent on it (might affect what the going rate for swaps is, but beyond that I'm price-agnostic). But then, I don't intend to use FRR either way, so... I guess do whatever you want with it.