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Jerry at Fish and Game just told me a new rule was enacted last year...
"if you do not apply at least once within 3 consecutive years...your points are lost for that species.Purging begins after the 2007 draw."
So if I apply again in 2007 my points are safe until 2010 when I must apply again.
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Why not apply between 2007-2010 and pile up the preference points (can you really have too many)? I do it online, and it works like a charm. An additional change is that they only take as many points as needed to draw the tag. In the past, you lost all points once you drew a tag. Slowly, the CDOW is entering an era where "points" act as currency (circa 2500 BC).