I think it's pretty fair. It seems like the regulars here really know each other, but take the time to welcome newbies that take the time to play by the rules.......
At first I thought that 500 points seemed high, but after a few posts I'm already racking up chips, so I can see how it can be easy. And what's the alternative?
A "private" game where half the people are sitting out, and the other half are all in every hand.
I like the point system, I wasn't here for the old system, but I guess you kind of have to view your points like your bankroll though, you don't want to blow them all for one tourney.