Faction Points most definitely need a reset, and a cap at say 25-50ish pts
Main reason, because it discourages people from xferring to a shard where you need tons of points to use your siut.
I also believe once you hit a high enough point status to equip rank 10 faction items, you should Never lose the ability to use them, unless you quit factions altogether (would help those who play multiple shards for pvp).