I like the +1s mechanic in most situations. When a dragon is chasing down a halfling, it makes a ton of sense that the +s still leaves room for the halfling to win some tests, but when the dragon wins he wins big (edit: oh, except the might difference doesn’t apply to a chase, now that I look at it…). However, there’s one situation where +s seem counter-intuitive, and that’s upgrading Traits to level 3. In many situations the level 3 trait is significantly better, but not for Pass/Fail tests or tests with a high obstacle. In these cases the lower level 2 trait is significantly better, and in the case of Pass/Fail tests the level 3 Trait (if I’m interpreting correctly) is downright useless.
It would be my inclination to allow players to choose to downgrade level 3 traits to level 2 when applying them as a benefit. This would only apply to traits and not +s in general. Is there a reason this idea is dumb? Am I missing something?