That's great input/insight, I think I agree with with most of what you're saying. What I really got from this book is that I was not managing my goals correctly. As a programmer when I'm given a problem the first thing I do is break it down into small, easily achievable pieces that then build up into the final solution.
I wasn't doing this with my goals and a byproduct of that was that I wasn't able to measure to progress of my final goals.
It's really more about how you manage your goals, not what they might be, but even with something as broad as happiness I think this is still possible. If you set "being happier" as your final goal, you can start to set daily, monthly, yearly... goals that fold into happiness. Happiness may not be strictly measurably, but if you know that working out 3 times a week makes you happier you can set that as a weekly goal. You then can set monthly and yearly goals around what working out steadily will improve (lifting more weight, running further and faster) and those things will usually be easily measurable.
There's edge cases for sure, as with most things. I will say it works better in a work environment where most progress can be easily measured (Even though it often isn't), but I think a good goal system is something that can be beneficial for any goal you may set.
However I do agree with #3 & #4, if your final goals are not in the right direction any adjustments to the daily, weekly, monthly goals will not improve that and may have a negative overall effect, but I think that resolves to a much larger issue than your goal management system.
Here is what I have figured out regarding this topic.
1) most times what really matters to you is impossible to measure. When you drill down to core motivation/drives.
E.g how does one measure “happiness”, relationship quality, friendship, quality of life, learning etc.
2) Due to 1. we measure a proxy for the outcome we seek.
3) if we get this proxy wrong, and we optimise/improve it we have no effect on the outcome. Maybe we even have the opposite effect.
4) We often import/take-on other peoples definitions/proxy metrics for the outcome. Not our own.
Think it was Russel Ackoff who said “rather do the right things wrong then the wrong things right”
In other words. Start with what you actually value/want and make sure the metric will get you there.