my players are only in it for the free boze and snacks... /cry


From my point of view, only if the players want their characters to be able to lose. I think most players want a real possibility of failure, because that makes success sweeter, so that does not interfere with OP's post at all.
In my opinion you're confusing John McClaine and Rambo here. (I'm talking only about Die Hard 1 here). The odds are against McClaine, but he doesn't just take the elevator to where the hostages are and the BBEG are and just open fire. He is very cool and calculating, hiding from his pursuers, taking their stuff when he can, and using guerrilla warfare to take them down.So how do we get that in a game? The more 'old school' style RPG says the way to get there is to focus on the outgunned and outnumbered. Throw machine guns and broken glass and see if they can do it. Some of us find that deeply unsatisfying though. Either we try to act like John McClaine and get killed, or we tread carefully, cautiously, downright paranoid. But that doesn't feel like John McClaine either.
It's very easy to either focus too much on your own dream, alienating the players, or or too little, alienating yourself.
I'm with you Average Citizen. I run games that create great stories, but I'll be clear that I only do this because I think its fun, and my group thinks its fun. We like exploring conflicts and themes. We like having big dramatic moments. We like each session to wrap up the current conflict as handily as a weekly TV show, even if there is a larger 'plot arc' working.
I don't think its about dream fulfillment for my group though. At least I hope not, my players are pretty adept at coming up with flawed, in some ways defective characters.
How is the OP not claiming that "my play style is superior to your play style, period"?
I think the OP makes an interesting point. It's probably true for many that their wish-fulfillment has something to do with what they'd like to happen to their characters. But I doubt it's true for everyone.
Look at D&D as a form of fiction. Its interactive and personal, but it's still fiction, akin to books, plays, movies, television, comics, and bedtime stories. People enjoy fiction for lots of complex reasons. It's true for D&D as well.
I'd suggest amending the thesis to "find out what each players wants for the character, and make that happen". That's almost certain to be a winner. But it's not necessarily what the player personally dreams of.
How much then are you willing to allow your players to fail? Can their characters lose, can they die? Is defeat truly a possibility?
BTW, when you say story game, what exactly do you mean? Is it just a matter of how seriously the world and characters are taken, or is it about telling a specific story or what? Maybe I'm being dense, but I'm not 100% clear on what you're advocating beyond "feed your players power fantasies and they'll love you".
From my point of view, only if the players want their characters to be able to lose. I think most players want a real possibility of failure, because that makes success sweeter, so that does not interfere with OP's post at all.
Also, your "interesting situations" framework is not mutually exclusive from the original post. It's just a matter of making interesting situations from the desires of the players. For instance, a player tells you his character is searching for the man who killed his father. For a more rewarding game, the combats should make the character closer to finding that man. I don't agree with every combat, unless you're an incredibly sly writer. I don't think every character with separate goals can have their stories furthered by each combat.
And, if all player's want is to bust down doors and take treasure, then that is their dream that the OP is speaking of.
As the GM, my job is to make is to make sure that when the Batman takes down the Joker, it's because he earned it, not because his name is on the cover. If you want your wildest fantasies to come true, write some fan fic.
As a long-time "primary dm" for many groups, I couldn't disagree more. What you post might be true for your preferred playstyle, but I don't find it to be true at all for mine.
I could as easily say that the dm's primary job is to have fun, and the players are there to amuse him while he does it.
As the GM, my job is to make is to make sure that when the Batman takes down the Joker, it's because he earned it, not because his name is on the cover. If you want your wildest fantasies to come true, write some fan fic.
Uh, thanks for telling me that I'm gaming wrong.
I understand the other style, just talking about what makes my game tick.
Generally, I'm not going to be asking the question 'can Batman take down the Joker.' Its going to be more along the lines of 'What will Batman give up to take down the Joker?' or 'Can Batman take out someone as crazy as the Joker without going crazy himself?'
That doesn't mean I should be writing fanfic instead of playing games.

(Dungeons & Dragons)
Rulebook featuring "high magic" options, including a host of new spells.