The ability to retrain would be nice now that the system is becoming diversified enough to warrant characters with specialties. If I spend hundreds of thousands of LP on Smithing only to realize later that I'd rather concentrate on Farming, I'd much rather correct my character than "lose" points I'm not going to use nearly as often, or worse - make an entirely new one. Considering that you can apparently totally change your personal makeup over the course of a few days, I don't see why letting one skill deteriorate while you train in another one is unrealistic. ("Last week I believed with every fiber of my being in peace, but now I'm all about pig-sticking my neighbors" sounds much more ridiculous than "I used to be a carpenter, but I've let that go; I'm going to be a world-renowned chef.")
Of course, I don't think you should be able to do this overnight, either. Certain amount of points per hearthday? One catch-all opportunity to redistribute per week? Perhaps you have to learn a skill to be able to do it? I don't know if that's the best route to take (you don't really have to learn to learn something else) but I'd rather see this implemented on poor terms than not at all.
Thoughts?