I honestly didn't know that you could send Microsoft Points to your friends outside of hearing vague plans, but then again, considering the whole process was very typical of Microsoft -- in that it was unnecessarily complicated and controlled -- that's hardly a surprise. Not that it matters anymore, however, since Microsoft has canned the whole project.
The system was in beta for a while, and wasn't all that convenient anyway, since you couldn't send points from one Gamertag to another. You needed the linked Windows Live ID before doing anything else. Like I said, typical Microsoft, although apparently the team was working on a way of sending points direct. Not anymore, it would seem, as the ability to gift MS Points at all has disappeared.
I hate Microsoft's Moon Money with a passion. I think they're arbitrary, unnecessary, and just a way of Microsoft exhibiting more power and control over its consumers like some sort of possessive husband. The fact you can't even gift them does very little to endear the nasty little buggers to me.