Yes but if you need 1500 points at minimum before you can cash out, that means you aren't seeing any cash back until you've spent $300 at Microsoft. The payout might be bigger, but you have to wait a lot longer to get it.
If that's worth it for you, that's great! But if I'm spend $60 at Microsoft a few times a year, I might rather just have $1.20 next month that I can spend on many things than $3.00 in two years that I can only spend at Microsoft.
Higher beat quartz watches do exist, like Bulova's Precisionist watches (which I believe do beat 16 times per second like you mention).
My understanding is that they are not more common because moving the hands more frequently like this uses battery a lot faster, so the watches either need to be bigger for more battery or require more frequent battery changes.