Thanks for the link! That actually leads to the official page, which is here:
Microsoft Account Transition to Local Currency | Billing and Subscriptions - Xbox.com
It looks like the points will be converted into currency, which are then deposited into your Microsoft Account. Oh happy day, because check out this little nugget of info at the bottom:
Where can I use the funds in my Microsoft account?
At this time, your Microsoft account can be used to buy a variety Xbox content from your favorite Xbox stores, as well as
content from the Windows Phone Store using your Windows Phone 8.
I imagine this will also apply to the Xbox One store, and surely they will have PLENTY of content in there... including full version games, which we all of course know. This is a good thing, considering I have over $50 worth of points from gifts, promos, and Xbox Live Rewards program It's hard to believe that they are actually starting to tie things into Windows Phone now. THIS IS GREAT NEWS! Now to tip WPCentral for front page news...