This may sound dumb but if someone picks up let's say a fitness point, does everyone else on the list below him move down?

Yes.

You do move down, but people's list #s does not change. If they move someone from, let's say, 300 to 100. They just squeeze you in with list # 100.1, 100.2, 100.3 and so on. So everyone's else list stays the same.

Thats not true Collars. The will fully adjust the list numbers. They do not stay the same. You will be able to check by calling DCAS hotline and putting in your social - then you will be able to see the difference after the add everyones pts.