I think there could be a middle ground here. Give the players options to earn point even if it is slow, at least people who don't want to or can't spend money on the game, can still kit themselves out with semi-decent gear.
And those that are willing to spend the cash, can get the equipment faster.
Farmville is a great example of this, the developers still made tons of money even though many people played for free. The fact that most items were available for free attracted millions of players, and Farmville parlayed that into advertising revenue.