Carrots are supposed to keep horses running. Some games treat their carrots like they're made of gold, or as if they fear their horse won't want carrots anymore if they give them out more than once a week. Actually, carrots are cheap as hell and horses can't eat enough of them.
Do you really think that there's no saturation point at which incremental gear upgrades become less appealing? For me, at least, I know that WoW did a great job at devaluing my motivation for gear; it felt as though there were about fifty armour sets from which to choose, and the ones that weren't palette-swaps gave the equivalent of AGI+346 instead of AGI+325; when questing, I had so many new, best pieces of equipment that I'd sometimes miss equipping one until I'd out-leveled it!
To continue the metaphor, I had a truckload of carrots dumped on top of me, and there came a point where I didn't clap my giddy little hands (hooves?) and cry, "Oh, boy! :D" every time I turned around and picked up another one from the pile.