Good point. re: drawbacks- what about creating a reliance on the game itself? If the game is removed, will the kid stop brushing their teeth?
Gamifying good behavior is just the latest form of "Nudge theory" which applies positive feedback or design elements to guide users toward a specific action. I think in an of itself is not a bad thing but has had some criticisms [1].
[1] www.slate.com/articles/health_and_science/new_scientist/2011/11/does_nudge_policy_work_a_critique_of_sunstein_and_thaler_.html