aaronrkelly brings up some very good "points". Pun intended.
Back in the old days, everyone used points and never thought anything about it. I had a 1976 XS500C (bought new) for 13 years and never had any problems with the points. Considering how simple points are, they do a good job firing the plugs.
The weak area of the old ignitions was the ignition coil. The stock coils only put out 13 k volts when new. As the coils aged, the spark plug leads aged, and the caps aged, the voltage could drop off until the spark was very weak.
Lads buy these old bikes, with worn out ignition parts, worn out rectifier and regulator, and the result is an engine that barely runs if it runs at all.
Its easy to blame the points when the engine runs badly, but they are not the real villan. If you have proper voltage such as 14.1 volts at 3000 rpm, good spark plug leads/caps ,and a strong ignition coil, your engine will run just fine using points.
I used points for the first year I had my XS650, along with my Accel coil, and the engine ran great.
Most of the young lads are unfamiliar with points, so buying a Pamco kit is the easy way out.