Is the mindspace discussion meant to be taken literally?

Not too literally. I used the concept since it provided a simple way to understand what was happening during meditation and how the benefits were obtained. Most importantly, I think it could be an aid for LWers who are going to try (or are already practicing) vipassana. The experiences I've had in meditation and the changes I've noticed in my life seem to fit nicely into this framework.

This motivation is also the reason points are used; they can be thought of as the subjective mind-moments one experiences.