Like anything, it's a cost-benefit. Here's my impressions.
Benefits:
Costs:
Personally, I really don't like the fact that goals "remove flexibility". The way I see it, what I should do depends on expected utility calculations, and these calculations change as I acquire new information and make progress in my analyses. I don't like the idea of putting myself in a situation where I'm not allowed to pursue the option that I calculate has the highest expected utility.
But I do find them moderately fun and motivating, and so I set "flexible goals" for myself.
I should also mention that one of the most important things that happened in my life involved setting an absolute goal. In 8th grade I made it a goal to make the high school basketball team the next year. I was pretty bad at the time and conventional wisdom said I had absolutely no shot. But I was extremely committed and I did it, and this made me happy and gave me a lot of confidence (sort of; it's more complicated).
Re: generally applicable advice - I've never been a fan of it (in this context, and also more generally). In the context of goals, I sense that people are different enough such that it's pretty hard to find generally applicable advice. Ie. they weigh the costs and benefits in the bullet points differently.
I'm not sure to what extent this is true though. I'm not particularly familiar with the literature, and I haven't thought about it too hard. I just sense that advice is a lot less generally applicable than "people" make it out to be.
It seems to be an important concept that setting goals is something that should be done. Why?
Advocates of goal-setting (and the sheer number of them) would imply that there is a reason for the concept.
I have to emphasis that I don't want answers that suggest - "Don't set goals", as is occasionally written. I specifically want answers that explain why goals are good. see http://zenhabits.net/no-goal/ for more ideas on not having goals.
I have to emphasise again that I don't mean to discredit goals or suggest that the Dilbert's Scott Adams "make systems not goals" suggestion is better or should be followed more than, "set goals". see http://blog.dilbert.com/post/102964992706/goals-vs-systems . I specifically want to ask - why should we set goals? (because the answer is not intuitive or clear to me)
Here in ROT13 is a theory; please make a suggestion first before translating:
Cer-qrpvqrq tbnyf npg nf n thvqryvar sbe shgher qrpvfvbaf; Tbnyf nffvfg jvgu frys pbageby orpnhfr lbh pna znxr cer-cynaarq whqtrzragf (V.r. V nz ba n qvrg naq pna'g rng fhtne - jura cerfragrq jvgu na rngvat-qrpvfvba). Jura lbh trg gb n guvaxvat fcnpr bs qrpvfvbaf gung ner ybat-grez be ybat-ernpuvat, gb unir cerivbhfyl pubfra tbnyf (nffhzvat lbh qvq gung jryy; jvgu pbeerpg tbny-vagreebtngvba grpuavdhrf); jvyy yrnq lbh gb znxr n orggre qrpvfvba guna bgurejvfr hacynaarq pubvprf.
Gb or rssrpgvir - tbnyf fubhyq or zber guna whfg na vagragvba. "V jnag gb or n zvyyvbanver", ohg vapyhqr n fgengrtl gb cebterff gbjneqf npuvrivat gung tbny. (fgevpgyl fcrnxvat bhe ybpny YrffJebat zrrghc'f tbny zbqry vf 3 gvrerq; "gur qernz". "gur arkg gnetrg". "guvf jrrx'f npgvba" Jurer rnpu bar yrnqf gb gur arkg bar. r.t. "tb gb fcnpr", "trg zl qrterr va nrebfcnpr ratvarrevat", "fcraq na ubhe n avtug fghqlvat sbe zl qrterr")
Qvfnqinagntr bs n tbnyf vf vg pna yvzvg lbhe bccbeghavgl gb nafjre fvghngvbaf jvgu abiry nafjref. (Gb pbagvahr gur fnzr rknzcyr nf nobir - Jura cerfragrq jvgu na rngvat pubvpr lbh znl abg pbafvqre gur pubvpr gb "abg rng nalguvat" vs lbh gubhtug uneq rabhtu nobhg vg; ohg ng yrnfg lbh zvtug pubbfr gur fyvtugyl urnyguvre bcgvba orgjrra ninvynoyr sbbqf).
I suspect that the word "goals" will need a good taboo, feel free to do so if you think that is needed in your explanation.