Can someone explain to me what the points are and what they're used for?
They're just a fun thing. No real purpose besides what you want to think of them as. There were times when they motivated me to do more to get more points to meet a weekly goal, or pass that person on the leader board I was close to, or to keep up with some people who were all following each other.
You don't use them for anything.
You CAN easily cheat but that's fine with me. I don't care about anyone who's weird enough to cheat at that. I don't cheat but i do offline workouts and when I am back in wifi range I "do" the workout and just skip to the end really quickly. It logs the workout to my profile with all the points, which is how it should be, imo.