The short answer to the question is yes. Yes they will go away. At least for now, in Windows 8. Microsoft has begun to remove their Points system in favor of actual money.
This is exciting news for Microsoft users as, like me, I'm sure users have been frustrated, annoyed, and just plain confused trying to figure out how much money they are actually spending. I have 590 MSP in my account so I have...$7.38?! Clearly, 590 MSP sounds like a lot more than seven dollars and some change. A bag of tricks! Making users believe their mound of points will go to something worthwhile.
Windows 8 will phase out MSP. Will the Xbox 360?
It's no different for the Xbox 360. Renting a movie, buying a game, and souping up your avatar all seem to be more difficult thanks to Microsoft Points. It's easy to spend Microsoft Points without realizing how much money you're shoveling out.
As of now, Xbox 360 users will continue to make purchases using Microsoft Points. However, because Windows 8 is phasing out Microsoft Points, Xbox 360 and the next gen console may do away with the system as well.
Source: The Verge
Megan Bethke, NoobFeed.
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Praise the Queen and Odin! Finally getting rid of that ridiculous system!