Gamification in itself has been around forever. As one article said it "predates historical records." So, it's not a fad in that sense. Monopoly can be considered gamification and video games in the realm of education have been around since Oregon Trail in the 70's.
I think the new wave of gamification is a great way to engage learners and keep them working hard, even if it's just to get extra badges for random goals that are set by the teacher. It is a slippery slope, however, to not get obsessed with them. I think gamification needs to be a supplement to a teacher's normal curriculum. I have observed in real classrooms that the students can go to the game websites when they are finished with their work early. While other students are still writing an essay, for example, a student who is finished can work quietly on an educational game instead of talking or disrupting the class.
There are a lot of uses and positives for gamification, but education should not be restricted to playing video games. They should be used when necessary to differentiate instruction. Maybe even a Jeopardy! style game to finish up a unit or chapter.
I found this blog to be interesting: gamification is dead
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