...is that it tries to solve a problem that doesn't exist. We already have a universal points system, across all aspects of life, that represents status and is redeemable for real world prizes. It's called "money."
That's Simona. She just turned 4. Vicky, her teenage sister, won't play Okami or Guitar Hero for her right now, and Mommy's too busy to go to Nick JR or Hasbro.com or the Sesame Street site, and she's bored with the videos, media-saturated child that she is. So she's down to Daddy's geeky games, and I can't get away with playing World War II games any more ("Look, It's Meekun!", Mao Chan's tank friend. No, doll, it's a Panzer V.)
She likes Eets, too, but today it's time for Chocolate Castle. She likes it for very different reasons from me, of course; the characters are little bunnies, and they get to eat chocolate. Yum. Of four different types: dark, milk, white, and rose. (Rose? Only place I've seen it is at a very gay chocolate store in the Haight, and the developer is in New Zealand, so where did they encounter it? but never mind.)
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