Regarding the theory that kids are set up for disappointment and failure later in life when they value their innate gifts too highly over their ability to grow, this Scientific American article claims that the key to developing a child's potential is teaching the child that the greatest reward comes from effort, not intelligence or ability.
The students who held a fixed mind-set, however, were concerned about looking smart with little regard for learning. They had negative views of effort, believing that having to work hard at something was a sign of low ability. They thought that a person with talent or intelligence did not need to work hard to do well. Attributing a bad grade to their own lack of ability, those with a fixed mind-set said that they would study less in the future, try never to take that subject again and consider cheating on future tests.