Wonder if companies setting "Stretch" goals, and having people fail, is actually a form of control. Get results, but also keeps employees down. People may be less inclined to ask for raise if they miss goals, even if the results were 'good'.
I suppose this is theoretically a good practice, but only if you're already operating in a high-trust environment. If you're not, it starts to feel like you're never good enough, because absolutely every victory, no matter how big or small, is followed up with "but it could be better...". Which is, again technically accurate, but part of the finesse of being a good people-manager is understanding that humans are not robots who can simply process and accept criticism without any emotional hangups.