Because the rewards points can only be redeemed for flights that are priced 3x as much as the kiwi flights. I've done the math many times, and it never comes out ahead. Just go for the flights with the cheapest price.
Not true from what I've seen. Prices can be the same. Perhaps it depends on what international flights one is after.
I do understand the strategy of just going after the cheapest flights and I know younger people who swear by it. But these are often the same people who will not pay annual fees for credits cards, so they have never tried these rewards programs.
Also, if a customer has accumulated a large quantity of points, then she may not want to use the points on the "cheapest" options. She might want to choose more expensive ones since she is using points.