ETA: S., this is probably what your mom is thinking of, and I'm in agreement with this article:
http://nymag.com/news/features/27840/
**************************************************************
Yes, and they know it.
Smart praise: noticing the effort or improvement in the action. "You really spent a lot of time cleaning your room, I can see all of your toys are back where they need to be. Looks good."-- this is more balanced and informative praise than "good job! Such a good kid." Another example: "Wow, Charlie! You ran all the way around the block. Remember when that was really hard for you, and this time you did it! Nice effort!" instead of "you are the fastest kid in the land" (there is often some weird hyperbole in parental praise)
The rote praise many parents absently give really stinks and kids-- they know it. Sometimes rote praise causes conflict with the child's own self-assessment. What I mean to say is, if a child drew a picture they aren't happy with, telling the child "oh, that's great" sort of belies all of the other times that we have praised them. That is, THEY know they didn't give their best effort, that it's *not* a good picture, and what we are saying is false to them. Far better, when they come to us seeking an opinion on their work, to turn the question back to the child: "Well, tell me about your picture...." and to let the child give their own interpretation and opinions.
I think overpraising is sort of a less engaged response to what our children do. We can always point out concrete benefits to what our children do without making it about who they are. Pointing out helpful behaviors we like "Thanks for bringing in the grocery bag. I didn't have to make an extra trip. That was thoughtful." or "Thanks for setting the table. I love having the help when I'm making dinner." or even "Wow, you remembered to set the table tonight without being reminded. You're really starting to remember."
All this instead of "You are a good little helper"---
These are two very different directions of praise. Praising the child often showers the child with positive words, but the praise implies that the child is only as good as their behavior in that moment. And the praise is to the child, alone. Praising effort focuses on not just the positive elements of the action/behavior, but also, if you have noticed, imparts a sense of belonging in their family/community/classroom. Your action helped the whole, you are a part of this group, your contribution is noticed and is important and you can be an active player in life.
And of course, at some point we should give the child the benefit of the doubt and remember they are intelligent. Praising a 2 year old for peeing on the potty is very different from praising a 5 year old for the same thing. At two, that praise is appropriate because they are on the cusp of that sort of development; at 5, it should be a given that they will be using the toilet, just like they breathe and sleep and we do not praise for those things. We should praise for things requiring effort, stretching one's abilities, trying new things-- in short, some sort of progression. Praising a child for doing what they already do regularly and what is 'beneath' their emergent skills, nope. That also undercuts the validity of praise.
So yeah, those are the facets of praise which I find intriguing. This is something I have had a lot of discussions about and have contemplated for years. Me personally, I give my son notice of good effort, and do want to let him know that he is a loved, good person- and all I have to do is take a quiet moment, look at him and smile and just say "I sure do like you, Kiddo".... just him. Not for anything he's done, but just for who he is. "Being love", as identified by Maslow on his hierarchy of needs.... being loved just for being, period. That's what I strive to give our son. That he knows he's loved just for who he is, without an inflated sense of importance, that he belongs to our family and his world. Sorry this was so long-- I'm sure there are many other great answers here.
ETA: I do agree with Ms May regarding over thinking, to a degree. I've thought about this a lot because I've worked in early childhood ed for a long time and this is something we who serve children think about. Does it mean that a 'good job!' never is uttered? No, but I have also seen an excess of 'good job' without the balance of constructive feedback for the child. I only think this is 'damaging' if there isn't that balance, as Ms May pointed out, and the child is shielded from the natural consequences of life. I will say, however, that hearing parents say "good job" every.single.time their child slides down the slide or does the same little dance five times in a row or draws the same "beautiful picture" over and over-- it gets a bit empty.