Imagine Gaining Diamond points for the time you spend on Minecraft
You could save up your Diamond points for unlocking Custom clothing such as
Capes
hats
tails
wings
claws
custom pets
or maybe your own Custom Armor Skins and Weapon skins
and a special 500 diamond points for HD Skins

This will make Each character have their own Special Unique look and feeling
From the Cute and cuddly To the Masses of Dangerous Evil

It will become Very popular on faction servers
it will become VERY popular on roleplay servers
and it will Show alot of Ranking on PVP servers

IT will help Minecraft Sell more copys as well as its epicness attracts players

Coders could even Upload their Models to Minecraft.net and sell them for diamond points!

Here's some Examples

Custom Clothing Creation
Minecraft makes its own Applet that gives you tools on to script your clothing and Color it
So you can add a box of dimensions for your clothing and Add Your colors!
And if it comes out well You can Pay a VERY High price of 1000 Diamond points to Publish it
And pay another 1000 if your planning on selling that model for diamond points.

GIF Skin Ability
Ability to buy the Animated skin ability for 20 diamond points and Add some lovely
Moving images to your skin
If you not familiar what a GIF image is its like
a animated Image

Effects
Buy Special effects such as Flares and Lights to stick to your Character model
So if your a Robot skin you can Stick Lots of lights on your Metal plating
Such as LED Light Eyes or Rocket Boots Animation when flying around in creative.
Each Led Light should be around 10 diamond points each

Custom Armor Coloring
ability to Color Your Diamond armor and swords So when you log into a server
minecraft.net Fetches Players Custom Files From the database and sends them to players

Skin Object Scripting
Ability to attach Lua Scripts to your Customized Attachments so they can flash or animate
The price should be 1 diamond point per 3 words in the code to prevent animation abuse

HD skins
ability to upload a skin thats 1x More resolution that the default
the price should be 100 diamond points per upload due to Bandwidth

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Also options in minecraft to Help Bandwidth Reduction so some servers have an
Anti Special Effects Option so it doesn't Make the server so laggy ect

Here's another image for an example