That’s a good example of a Critical Flaw but you always want to tie it into the Overall Story as that is what that Appreciation is all about. It ties the Main Character to the Overall Story. It’s why he or she is in the story.
As far as doling it out to the Audience, under normal circumstances you’ll want it to come out at least once per Act. I have found that if time is scarce (as in a treatment) you can get away with just showing it twice – maybe the first Act and then the second–depending on the Overall Story Outcome.