Earlier quoted context omitted.
So the way I have always handled it - Product owners create stories. These are titled things like "As a (type of user), I want to be able to X". The point of the title is to determine who this actually benefits. Then, they attempt to define it with acceptance criteria. These are a list of "what does it mean to solve this need". Ideally, it implies a set of tasks, and gives a decent starting point for QA to start test…
What always annoyed me about Story Points is that it's a measure of complexity, not time. At least that's what Story Points are supposed to stand for. When you state that a team should know how many Story Points it can handle, it would make much more sense to see Story Points as some measure of time. If you've completed last few Sprints 38 to 42 Story Points, with 2 full-time devs, than one could state that a single…
For ease of use, let's say that a story point represents 8 hours of actual work. That gives us 168/8 points a week, or 21 points. Of course, we lose 7 of those to sleep, 4 to the weekend and another 5 to the evenings during the week, leaving us with 5 points per week. You probably lose a point to lunch, coffee, bathroom breaks and mingling with coworkers and another point to meetings and interruptions.
That leaves you with 3 points out of 21 potential points in a week, and you aren't getting 3/5 done per day. Using story points instead of hours tries to get people to treat the sprint as a unit instead of time as a unit, since time can be split up to a very fine degree. Just because you work 40 hours a week doesn't mean you can complete 20 2 hour tasks.