Michael K. Eidson
Archmage
What constitutes good execution of this methodology?
For me, the fundamentals are clarity of rules (best if "shown" rather than "told," or revealed through dialogue), consistent application of multiple rules, exploration of multiple rules throughout the story, and unanticipated but fully acceptable application of one or a few rules near the end of the story.
The question becomes one of what you consider as being the "rules" of your story. They don't have to only be environmental or magical. You could have the behavioral patterns of a character as a set of rules. This is why Heliotrope can claim that all good stories do this.