From a realism perspective the points system is less than ideal, however some way of tracking success and progress is necessary if nothing other than to provide a mechanism for handing out promotions and awards.
I like the NYGM tonnage model as this reflects the main metric the Kreigsmarine and the RN used as a yardstick on how they were performing. I think that upgrades should be handled more by an offer of an upgrade or even in some cases have the upgrade forced on you but "spending" renown on things doesn't make much sense to me.
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