Confusion over the "ip default-network" command. Doesn't seem to work, or it's not working in the way I thought it does?

I'm labbing a bunch of stuff in GNS3, and I always thought the ip default-network command was the recommended method of setting a route of last resort/default route. But that doesn't seem to have any effect in the software I'm working with? I've entered the command to the default route I'd like to use, but it's still saying that the gateway of last resort isn't set.

Here's the running config, as well as the show ip route

My goal is to set the route out of Fa0/0 as the default route (I've got a router set up as a fake internet cloud, I can ping the .1 address on that subnet fine)

What am I doing wrong?