The <pointsforplaying> token is a little tricky, because depending on what your Points for Playing formula looks like, you sometimes can't actually show the number of a points a player who busts out in a particular position will receive. All you can give is an estimate.
If, for example, your PfP formula is: n-r+1+nh
You can't really show what a player who goes out in 3rd place will get for points, because you don't know how many other players that 3rd place finisher will bust out. In this case, the "nh" part of the formula (number of hits) won't necessarily be accurate for a particular player until the tournament is over.
The <pointsforplaying> token works like the Points for Playing "Test All" dialog. That is, "here's my formula, let me fill in some fake values for what any player might get, like number of hits, number of rebuys, etc, and then run it for ranks 1 through 10". Attributes in the token, such as "prizeWinnings", are the fake values you fill in to give a more accurate representation of what a player might receive if they go out in rank N.
To be honest, I'd love to get rid of this token. It's messy and unless you have a straightforward formula, like the default "n-r+1", it won't show you real point values that will be awarded - only estimates.
At this time, there is no unified way to show the prize amount a rank receives along with the points for playing amount. You'll have to use <prizes> (or <prize>) and <pointsforplaying>. It's an ugly solution, but frankly, it's an ugly problem.