No. They mean 200 points. You can pay an extra 200 points to keep those memories.

On a completely unrelated note, I know some people get upset by the idea of gift pokemon being discarded, but I will not be upset with anyone buying a clone of a gift I got them and giving away the old one, if this is the only financially feasible way for you to change the abilities of it.

Also... for MLG's metaphor... While I can't do it regularly, hair dye does exist. We are not saying that we should dye our hair every day, but you guys are saying that hair dye should cost more than a cloning machine.