That definitely makes sense. I just know how annoying it is to see a longer streak get broken simply because you miss one day over an extended period of time. It may generate more motivation to be active, but it could also generate sheer frustration for not being able to log in for a day or two because something unexpected happened in your life .. or you were on vacation and thoroughly enjoying not using your smart phone :)
RE: [Set 1] eSteem Gamification Badge Recommendations