I also agree with everything Kayte has mentioned above, another issue that could occur is that it discourages users from doing homework. They could put their heart and soul into an assignment and be proud of it, then someone comes along and tells them that their effort, time, energy and creativeness has failed them and that they cant receive an O. That could upset someone and cause them to no longer have the desire or drive to participate by doing homework.

This is coming from a Current AT of a few WoP sites, users have come to AT's and teachers explaining how they no longer desired to do homework as students gave them grades off for things such as grammar, spelling, "lack of creativity", "lack of effort" etc. We want to encourage users to get involved, do homework and have fun. I feel as though taking grades off due to things that aren't required. 

I do love the fact that you have suggestions on how you think the site can improve, I really do and I hope that you keep suggesting things that you feel could be improved in the future!