What to do with EXP now..?
Couple choices:

Don't EXP (the best choice)

Farm IS/CP, you still get this whether you're gaining EXP or not.

Or, keep your merit tank capped, and use them to change your merits around.

Also, some people have maxed everything and maxed all merits but lots of people havent, and lots of people choose not to.

(The extra daily tally points isn't a bad idea though).

Yes but on the long run this thing, just like removing merit caps (Originally Byth's idea which I wholeheartedly supported) doesn't solve the issue, it just delays it.
But why do these people need a reason to exp in the first place? I'd personally be happy I don't have to do it anymore.