I think it's a great idea. It's also fun sometimes when there are huge disparities in taste to serve foods that can be customized. Like with chili, you could make a hot and a mild variety, and then get some cute condiment bowls and put out onions, sour cream, cheese, cilantro, etc.
Another option would be something like fajitas, where you wouldn't even need to make separate versions of the meat - if people wanted a hotter flavor, you could simply dump some jalapenos (or worse!) in your condiment dishes.