You can use your points to book any Disney resort. It’s a restricted perk for “eligible” members.
Just like you can use your points to book DCL.
The points cost though isn’t favourable, You might be better renting points out and using the cash to book instead.
Edited: checking the WDW resorts, All Stars starts at around 9 points per night. WL starts at 38 points per night.
Also if you do book that way, those points are then stuck. They become what’s called reservation points. If you had to cancel the points cannot be used for a DVC booking, you would have to use them to book another non-DVC resort or DCL.