Can I use a simple fuse to protect a CMOS over current?
Your scheme will work for limiting the overall power dissipated by the FET. The problem is that the current can rise very quickly and damage the FET.

I have successfully used a small value resistor in series with the FET to limit the fast spike of current during a fault until the fuse (or breaker in my case) has time to blow. This could also be used as the basis for detection for an over-current shutdown circuit.

The resistor should be sized to limit the short circuit current to the peak non-repetitive surge current specified for your transistor.