I was looking for this rule in the DMG and couldn't find it. Does anyone have a page number?
I mean, I think I can figure it out. These are the same points as used to buy attributes, right? So if you are LA0 you get 32, if you have LA1 you only get 25, etc. Is that how this variant works?
EDIT: Based on my interpretation, it seems like you would probably have a lot of players opting to be half-dragons (and maybe half-celestials/fiends too). As a half-dragon who buys the LA3 with points you could have these stats: str 18, dex 12, con 14, int 10, wis 8, cha 10, which would normally cost you 30 points (so you're only really losing 2 points) and you gain all the other benefits of half-dragon, like +4 natural armor, immunities, breath weapon, natural weapons, etc. Am I misinterpreting these rules?