1) If your old account was a single-person account with 700 old points, then your new account should have 4550 new points. If this is not the case, then contact Lego CS. It has been reported that the transition is not yet fully complete. However, when the dust settles, you should have the same spending power from your acquired points under the new system.
2) If your old account was a two-person-merged account with 700 old points, then your new account should have 2275 points, while your partner's account should also have 2275 points.
On a related note, Val-E is correct in that point usage is less flexible. In the US, under the old system, if I buy 2 CMF packs for $7.98, I could redeem sufficient points to pay exactly $7.98. Under the new system, it appears that I can't. Also, under the new system, the next tier after $5 redemption is $20 ... and not $10.
Nevertheless, I agree with ravenb99 that the big positive is the opportunity to redeem for GWP products. Also, don't forget the additional point-earning opportunities. While some may think that the reward is too little for the work, others may believe that it's worthwhile, especially if your point balance is just a little short of the next redemption tier.
In sum, I believe that the positives outweigh the negatives.