The point system seems unnecessary. Rather than making it strategic I just get annoyed that I have to shuffle and possibly ruin a decent formation just for a little upgrade. It isn't even very easy to get good gear, so it wouldn't be game breaking.
If you add a 0 onto the end of all of the exp values for killing monsters then I guarantee players will be more likely to stay. Giving little grains of experience so that people have to buy to continue at a a reasonable pace just makes them angry.