I've been finding this is true for characters, too, though I'd suggest drama, rather than conflict (niggling semantics).
Look at the character sheet for many rpgs, such as World of Darkness or GURPS. You can divide the mechanical parts of the character into two sections, those used to resolve drama and those used to create drama. Attributes, skills, equipment, and the like, all serve to resolve drama. Advantages and disadvantages, or whatever they're called, more often serve to create drama in the game, though they sometimes affect resolution effects. I'm finding that my games are pushing more towards the latter category, that every game element must create drama. It seems to fit with rpgs, which are open-ended systems.
I disagree with the idea that detail makes for bad settings. His own example regarding kanks and erdlu is an example of difficulty resolving a detail with understanding how the game setting works. The presence of the detail isn't the problem, and could be a great source of story (perhaps possessing kank are a measure of status and therefore prone to rustling despite their being less useful, or you could quest for a method of cooking kank meat, or whatever). I love running games about the trivial and the mundane, especially in fantastic settings. Your trivial detail may be the root of my campaign premise.