I disagree with you on this : points alone are not enough to balance armies; one needs to look at it as to where these points CAN be spent as well, or then I’d like someone to explain to me why Mesoamerican armies are so rarely fielded, even when flavorful (such as Aztecs or Incas). Could it be that they CANNOT field anything that has a semblance of resistance against European lancers ?
I am on RJC's side here.
Of course the points aren't perfect for every possible match up. Devastating charging lancers vs pike for example. The mounted pay loads of points for something that is directly cancelled.
What the points do a very good job of is getting armies to have roughly equivalent power and even at the same points army A is significantly better than army B, army B will be significantly better than army C which could well be better than army A.
Compared to other games I play (for example Flames of War) the MeG points system is very good.
As for massively outmatched armies like meso americans, I think I managed to beat or at least very nearly beat Simon's Normans with my Libyans and that was back before the points made skirmishers a bit cheaper.