Psychology and ELT - Demotivation

You try something and it doesn’t quite work; you try a different tack and again you fail. Do you try again? Well, the answer seems to be that it depends on whether ‘failure’ has any consequences. Watch this amazing 2-min video.
Now think about what happens in class: do our students feel safe to experiment with language? Are we perhaps too focused on marks/grades based on performance? And what would have happened here if people were actually rewarded for trying and trying again?
[NB: I do not own the copyright to this video clip. I have uploaded it here for educational purposes].