It's usually a good idea to put all the points into one element. As to whether that one should be the element of the knuffel or a different one, there's pros and cons to both.
Putting all points into the element that the knuffel starts out with allows you to reach the maximum number of points possible in that element, which will slightly increase your chances of finding rarer materials and items once the knuffel is leveled up.
Putting all points into a different element will allow you to successfully dig in that different element soon - and your knuffel will get more experience for finding an item in an element that is not its own compared to finding an item in its own element. Therefore this way your Knuffel will likely level a bit faster.
Which of the two options you prefer is really up to you :) I don't think it makes a huge difference either way, so long as you don't go and spread the points over a bunch of different elements. That is not a great strategy in general.
There's no way to reassign the points, Julez, it's just that Firn has said that if fighting is ever introduced, we will get to reassign the fighting bonuses, since we don't really know what they'll do yet as we choose them.

Oh right, the fighting system... But as the button disappeared, I guess it won't be implemented.. Man, it would have been great!

I am about to finish the event, woohooo!

Ah, Shea Heart, when you talk about permanent knuffels... you know that you can adopt your trial knuffel so that it's your permanently, right?

If you wait until the trial period runs out, it will run away back to Knufftropolis and all your leveling progress on it will be lost, it will completely reset.

That's true, be careful with that!

I finished the event, wohoo!

I hope I can finish the event today, but I dunno just yet.

Thanks. *crosses fingers* Finished! My daughter asked for the knuffel, so I gave it to her.

So how is everyone today?

Yep. It's pretty!

Okies. Good night.