[Discussion] Points as virtual currency

Points are fun and all and give a soft metric of interactivity, but how could they be made more useful? I don't think using them to render real services or goods would be a smart idea, so what else could they be utilized for if an app was made to use them as a currency?

The only thing I can think of would be purchasable badges that are simply for fun, or to "buy" an alternate template that could be used on the site for the user. What are your thoughts?