People made a choice that had opportunity costs. If they weren't properly informed that the heirloom gain stopped being proportionally worthwhile beyond level 36 then I empathize with em, that information should be more prominently displayed, but the point of going beyond 35-36 (or over 31 back in the day) was to have a level advantage over others, more skill points, more viable extreme builds, etc. I don't see it as a punishment, I guess- it comes with its own benefit, a sustained one, too. You also get the aesthetic title to announce your nerd status.
Though since the module is die every retirement should probably just give 12 loompoints whether it's at 35 or 38