A lot of the bike you see with the points cover off probably don't even have any points in there, or are running an electronic ignition. In my case the points cover is there...but the whole cavity is empty since I use a crank triggered ignition.
In general on a race bike you want the points to get plenty of fresh ozone free air....but not so much that water gets in.
I ran my cb350 at mid-ohio 2 years ago with no points cover. Of course it was in the rain and I didn't do it on purpose, the points cover just fell off. It only ran on one cylinder down the straights but in the turns my knee shielded it enough that the points would dry out and it would run on two cylinder until the next straight.
Corey, the point here is don't be looking to mess with little "cool" stuff until you get your bike on the track and figure out what you are doing. Make it safe and reliable, STOCK IS BEST, and good handling. Then worry about the little stuff if you ant to keep racing that bike. By the way, I recommend against racing your street bike to start out with. Just gt a bike for the track.
The EX500 ain't fast, but you can beat the holy crap out of it. Tons of people race them, than CAN be made to perform pretty well. And although I haven't looked, I'm guessing there are lots of go fast goodies for them.