That is, we estimate a certain set of tasks. For this two-week sprint, we're going to try to do a subset, and that subset adds up to 20 story points. After two weeks, how much did we actually get done? 7 story points. Next sprint we did better, we got 11 done. After a few months, we settle down to an average of 10 story points per two week sprint. Now we know how many hours something is (estimated to be) based on the story points.
Note well: This velocity is a function of the team. If the team composition changes, previously measurements of velocities are no longer valid.
If we were working on one app and just adding features and fixing bugs, maybe it would converge to a consistent average. However, I have always worked on teams that have myriad projects, moving in and out of development, with constant support and interrupt driven work taking up a huge variable amount of time.
So naturally people will come to despise it because managers will want a number and to hold you to that number. A strict number can't be given, but intuitive guess which has certain probability of being in a certain range according to experience can be.
If you have two engineers and one consistently completes 10 points a sprint and the other only completes 2 points a sprint, does that not tell you something about the output of those engineers?
Or as I usually put it: Statistics/charts are for asking questions, not answering them.
Low point stories that take a lot of time are often coordination tasks, and for people who are good at heads down programming, that can be their kryptonite.
It's also possible that Mr 2 Points is not getting fed stories that they could weave into the blocking points of their highest priority task effectively. He is spending a lot of time working on untracked tasks or sneakily working on stories halfway down the backlog. And they can't do it in the open because someone is engaging in Efficiency Theater: we are so far behind on some milestone that the optics of anyone working on anything except that milestone are terrible.
Nevermind that the next milestone needs them and we will be having this Death March repeat again in three months because of it.