I don't know why they stopped it for sure, but i would say it was because people were honoring themselves. Back in the day if you deleted your app it would save your information for when you re-installed it, but the identification system changed that to where it would be a new account everytime you re-installed graal. So all you had to do was get on facebook and keep re-installing graal to honor yourself. That or you could create many fb accounts to honor yourself
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Wasn't the honor system removed before VIP? I thought it was removed because it was intended for people to honor someone that helped them, but people abused it by scamming ignorant noobs at Balamb for their honor points instead (like what happened to me

).