A stock HEI is definately better than points (at least in my opinion). Points, bounce, and degrade quickly. Most engines will run better, idle better, start better and pull stronger with a breakerless or electronic ignition. Of course, the rest of your ignition (plugs, wires) make a difference as well.
In my experience, HEI ignitions are OK up to like 4500-5000 RPMs, then they drop off. I like the MSD 6 series for street or dirt racing, along with a better coil than the stock HEI one, but you can get almost the same results with a Petronix or other kit that fixes the HEI's short comings with a new module, and a stronger/higher intensity coil. THe Mallory HY-Fire is also a good unit. It all depends on how much you want to spend/how fast you want to go/how many RPMs you want to turn. :-)