Now essentially Coach Riley is simply trying to visually make clear to a player that if they are striving to do their best they should be able to improve on their previous performance. Anyone knows that the higher you go in the game the more difficult it becomes to improve because all skills have a learning ceiling. Player's at these higher levels have high motivational levels which keep them pushing the ceiling. I think goal setting is extremely important. Goals provide players an illuminating light to clearly see why they are busting their tails when no one is watching, and when they are discouraged and not playing well.
Goals are a frame of reference to keep the train on track.
If you are not achieving your goals, then a coach and their players should sit together and see if the pre-established goals and attached action plans are being fulfilled to the best of their ability. An action plan is simply the physical step and practice you take to improve and reach a goal. Action plans should be very specific. I think there are values in both perspectives in terms of goal setting. I believe Coach Wooden's philosophical goal is what you might term an ultimate goal.