I apologize for being a bit dense. I've been pondering this question and I'm sure I just don't understand it correctly.
People will spend hours a day for months playing a video game, yet they usually fail within days at losing weight or getting fit and then quit.
Steve's argument is that people can apply game design concepts when creating real-life goals, increasing persistence.
Example:
Someone might create a character based on James Bond. They then create steps (levels) to move closer to that ideal. They determine that their James Bond-like character is at 8% body fat, a black belt in karate, and fluent in Japanese(3 goals).
This person is currently a 200 lb couch potato, so they decide they are at level 0 in fitness and their goal of 8% is level 50. They are at level 0 Japanese, fluency=level 50, etc. These can be separate, concurrent goals or wrapped together. They decide to bundle the bodyfat and Karate, as they overlap.
They define level 1 as joining a karate school and working out 3X/week for six weeks and assign a point scale.
If they don't hit their targets, they repeat as many times as necessary. They may adjust their measurements for level 1. If they fall completely off the wagon, they "respawn" and start tackling the levels again.
I don't see how tricking my mind would play into this - did the example help?