Yeah, spell points are far worse than power points. I'd say that the psionic system (excepting the erudite) is pretty well-balanced. But with a spell-point wizard, you get all the benefits of spontaneous casting, but get a near limitless number of spells known. Spells cast by spell points also scale by CL for free.
Fireball: 5 spell points, CL 10: 10d6
Energy Ball (Fire): 5 power points, ML 10: 5d6. Want 10d6? Spend 10 pp.
Granted, psions get more power points than spellpoint wizards, but it's not enough to make up for it. In terms of flexibility and potential damage per day's worth of spells, the plain wizard comes out ahead of psions. Making the wizard more flexible and better-able to nova is great if you like wizards.