This is an awesome topic...
We tend to do this sort of thing with our children, too... and encouragement is definitely important! However, it can turn toxic in a hurry when the praise lavished on a young person is actually not a reflection of their giftedness, but a projection of the parent's own crushed dreams.
As a father of one child, and as a son of a very strict father, I try to make some kind of compromise that I had and all this "modern" parenting... And you described it very well... All these "too much" positive things are killing psychology of kids...
I'm also all for encouragement, but when ALL kids receive the medal for running (even walking), the medal of being the first lose its shine... It creates thinking in child... "why should I bother if all will win"... I mean, that's just one example, but there are many like that...
Of course, this is an example for kids, but there are many examples in "adult world" also...
Cheers! And thanks for this inderesting post!
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RE: Mental Health: The Fine Line Between Affirmation and Enabling