I agree with most of that. Right now, my points just kind of mean I have a cool title. As the points currently are rather...pointless, most people don't really care about getting them or worry about penalties. If they meant something, that would make point penalties actually impactful, and it would make people read more stories in an attempt to get points. :P
I don't agree that doing this would make us like CoG though. CoG makes you PAY for the games with real money. On the other hand, if we do this, points can be achieved through reading stories, daily points, and helping around...and you wouldn't have to pay real money for them.