I think a fanny pack is a great gadget when you do on vacation. It's not as bulky as a backpack and you don't have to carry it around and risk losing it like a purse. It fits the perfect amount of stuff like a wallet and a cell phone and I think they look fantastic with any outfit.
Yes, traveling is more fun when you wear a fanny pack, because you have all the things that you need for travel, right at your hip. You will never be short for sunscreen, or cash, or your fun pocket camera if you wear a fanny pack. A fanny pack is fun travel personified.
Lets face it, Fanny packs are a thing of the past. They served a purpose at one point but now they're out of style and have run their course. Since 911, a fanny pack is one more thing to be searched or run through the xray machine at the airport and one less thing you need on your trip. Leave them at home!
If you like wearing fanny packs, then absolutely, travelling is more fun with one. But if you don't like them, your fashion choices should have no bearing on your enjoyment of your trip. If you are doing what you love in a place that you love, that is all that matters.