This sort of thing makes kids resent reading. Especially kids, like me, who were given extremely unrealistic goals to meet because they happen to have a high reading level. Plus you're restricted to books that are: 1. Your exact reading level. 2. In your school library. 3. Have A.R. tests available. That, especially in smaller schools, is an extremely difficult set of criteria for meeting a goal. It made me HATE reading because there were no books of any interest to me, but I had to read the most bizarre (and, frankly, age inappropriate) things to meet the goal and get a good grade.
Bring back Pizza Hut and toss A.R. back in hell where it came from.