ExploderWizard
Hero
Well, I think rather that failure is interesting if it involves meaningful stakes. Sure, those stakes can involve the narrowing down of the characters' options - and this can even be beneficial in that cutting off the simpler options can get the players thinking about the more interesting ones. But, generally, I find that simply narrowing down options is a pretty poor basis for stakes - particularly if it is applied to most or all of the actions in the game.
And I think what Fail Forward is really saying, at its best, is "consider the stakes of any conflict carefully, and don't make them a (boring or repetitive) narrowing down of PC options". Make failure interesting by making it diverse.
Not every action is a contest. Sometimes there are no stakes. Not every game style uses complications as "story currency". Sometimes there are straightforward applications of knowledge or ability, and one can either complete them or not.