AbdulAlhazred
Legend
At the risk of sounding like a broken record, I would like to reiterate that I think the "three failures" model and the "failed skill check results in a failure" condition is a very poor setup for skill challenges in general.
Well, I ran a number of SCs using Obsidian SC system and what I've found is between it and the updated 4e system there are SOME differences, but not as much as you might think. Obsidian eschews failures, but in essence they still exist in that anything that isn't a success is a failure. In fact it deters people from using secondary skills in that they either have to also contribute to the success count or else they are effectively failures. It does pretty much mandate that everyone participate (I guess you could sit on your hands, but it would just hurt the party). So it has a couple of strengths, but equally the more structured round based mechanics can be too constraining at times.
In any case, if someone has come up with some other set of mechanics that doesn't involve counting up how many times you made your DCs I for one want to hear about it. I can easily structure a ADVENTURE that way, but any kind of activity can be broken down to SCs. If it involves a branching plot line then it should be multiple SCs and that's about the only other way I can think of to structure that kind of activity is as some sort of "flow chart". It would simply be a slightly different way of deciding what die roll counts for what in the end.