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I'm not in favor of yearly resets - why wipe the slate clean so easily, and in such a programmed manner? For the most part, people earn their karma, whether it is good or bad. If somebody repeatedly earns negative karma, those red boxes serve as a sort of identifier about his tendencies. People use that information however it may suit them - whether it be choosing not to do business with him, or merely choosing not to engage when instigating posts are made. If a person chooses to change his ways, positive karma can easily overtake (and overturn) negative...let that be the incentive. On the other side of things, why strip a positive influence of his/her karma? What is the purpose - other than leveling the playing field?
I'll agree that the resetting of karma tends to trigger an increased use of karma; but I don't know that it would do that long term if there were scheduled resets. I rather think that it would increase the "karma doesn't matter" attitude. We know it doesn't matter, in the way that tangible things matter - it is largely a feel good measure...a way of making a friendly gesture toward another member (negative karma is a different animal, which is why its application is limited) - but I think too frequent zeroing might be self defeating...leading to a why bother attitude.
Does the karma feature actually add anything positive to the site? I believe that it does, in that it does promote a feel good, complimentary type interaction/feedback. Is it a big deal? No, I probably wouldn't think twice about it if it wasn't here...but friendly interaction between people, and an easy means of showing appreciation (or sharing a laugh) is invaluable, IMO.
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