In the gamification of applications, especially community driven web applications, is there a 'max' level of granularity that motivates users to participate or the designer can just go wild without any repercussions?
People play games with hope to win/defeat them. If there are too many steps in a game that will be discouraging to users and most people will just quit. However, if the steps decrease, they should get harder to avoid having every user at the top of the pyramid. This could also discourage users.
In case this is not clear, an example would be the current privileges of SE. If they were to increase in quantity and be finer in quality, would that lead to a bad or better experience for users?