Too Much Grading? Use More Self Assessment

I believe that, as teachers, we get too caught up in grading everything. Journals, notes, worksheets, drafts... everything gets a grade! This puts too much stress on student and teacher alike. We want all our students to improve, even the very best and brightest. Effort and improvement simply are too critical in the learning process to go unaccounted for. Perhaps the single most effective tool we can employ is self-assessment. If students learn to comment on a regular basis on their strengths and weaknesses, dialogue with the teacher can lead to successful achievement. Self-assessment, critical thinking, expression, and reflection are (or should be) our ultimate goals. If we can't look back on something and see the value gained and the lessons learned, I'm afraid we waisted a lot of time, money, and effort. What do you think?