I try to stay away from the term "gamification" because of the stigma associated with it and you're right, it's the new buzz word. But as an avid gamer, I think the achievement/rewards portion of a game can be used across other mediums, like websites, to incentivize visitors and foster discovery of content. I agree that just slapping a badge on a site is a massive FAIL, but providing achievements that drive others to discover interesting content on your site or acknowledge their participation may have some merit.