They were removed due to them being extremely uncannonical. Also, this kind of question belongs in the shoutbox, as it can be considered postwhore. I'm no admin, but you ought to be warned.
Removing Loyalist Points was just a dumb and lazy move, it could have easily been more enforced such as telling units to only give them a point if they WITNESS them roleplay it PROPERLY. It could also have been capped to gaining 3 loyalist points at max every 24 hours. Instead, it got removed and just made it even more Rebels vs CCA, nearly killing Loyalist RP and making the CWU crumble with it even more.
I always thought it was because minges would farm them in order to apply for CP on the day they first joined the server?
Removed by SatN because we talked it over me and him and we decided that it was just something people lied to get and constantly asked units every two minutes for a job to do for them (may return in future)
I like how it was 2 people who decided a change like this, with no other input from the Commanders and High Command at the time.