We just rented points for the first time. (We used David's DVC Rentals and have been delighted with their customer service, but I've heard good things about the DVC Rental Store as well).
The pros are: you save a boatload of money (for us, more than 40% off of rack rate for our 2-bedroom villa at the Wilderness Lodge) and get to stay in a resort that might otherwise be beyond your means. You will have access to all the same amenities for staying-onsite that you'd ordinarily get, including early access to FP+ reservations, extra magic hours, and the ability to book the dining plan. (You cannot, however, access DVC-member-only perks, such as the Top of the World Lounge at the Contemporary). Also, if you go through David's, DVC Rental Store, or a similarly well-reputed "middleman" company, they will do all of the legwork for you. Their courteous, English-speaking staff will make all of the inquiries, set up the transaction, and e-mail you the details. Your job is just to make an accurate reservation request in the first place (you should be sure about when you want to travel, what DVC resort you prefer, how many people are going, etc.), pay a refundable deposit if and when asked, and be ready to pay in full if and when they secure your reservation.
The cons are:
(1) although the process is safer with a middleman (e.g., going through David's or DVC Rental Store, instead of the member directly), there is still a risk that the member will bail and you'll have to pursue legal recourse. David's promises to secure alternate accommodations or, failing that, get you a refund if your member breaches the rental contract, but there is no indication when that will happen -- e.g., they may have to get a judgment against the member first, and collect on it, which means you might never see that refund... I admit, I've never read about such a thing happening with regards to either of those rental companies (I have seen many accounts about it happening with people who try to rent directly from a member, however!), but the risk, however minute, is technically still there.
(2) you can't cancel and get your money back. Once a DVC reservation is made, you must pay the full amount and you don't get it back if you cancel. (I got around this by purchasing vacation insurance from TravelGuard which covers our room cost and airfare if somebody gets sick and we have to cancel at the last minute. It cost a little over $200 to insure about $5,000 of room cost/airfare for 6 people).
(3) you won't get daily housekeeping (this is true of any DVC stay on points, whether by a DVC member or a renter). For some people this is a big deal: for my family, it's a non-issue. Instead of daily housekeeping, you get your trash emptied and towels replenished on day 4 of your stay. You can request daily housekeeping services, but you'll have to pay extra for them.
(4) you can't take advantage of any discounts that come out after you book. If WDW offers free dining or a discount on your room, you can't have it applied to your reservation.
(5) you won't have a "package," so you'll need to buy your tickets separately. Seriously, this is no big deal: a few clicks on the WDW website (or UndercoverTourist) to purchase. Once they arrive, you can link the numbers to your MyMagic+ account and you're good to go. By the same token (as mentioned by a previous poster), you'll have to work through your "middleman" rental company if you want the dining plan. The DVC member from whom you're renting will add it to your room reservation and will need your credit card number (or Disney gift card numbers) to pay for it. Ditto Magical Express.
