When you reference the points values, it would be useful to also reference replacement level bats. So 550+ is a tier you are focusing on, but how does that compare to a player you could have for "free" off waivers? You noted that 25% of the players in the 500-650 range could be had as free agents. So that may suggest that replacement level is around 500 points? Hard to tell.
And then how does that compare to pitchers? Where is their replacement value and where are the aces?
And can you swap pitchers in and out on a daily basis? If so then the pitcher spot is really a combination of multiple pitchers each week. If you have enough solid starters that you can swap a +50 SP (over replacement) pitcher in for his starts, then that one rotation spot becomes 50 points more valuable to you. If all you have is great hitters and you are facing a team that has decent hitters and a great staff that they can swap in and out for their starts, they you are facing an uphill battle.