Sorry to reply to your post over here but I'm trying to respect the topic of the other thread ("FP+ only Toy Story Midway Mania").
@WDW1974 's original post on this thread ("The Spirited 8th Wonder (WDW's Future & You!)") notes that Disney's plans are to continue the trend in recent years of converting unused hotel rooms into DVC. Disney is not building DVC so much as converting excess hotel inventory into timeshares.
Early in its history, DVC's goal was to steal business away from offsite timeshares. DVC's first two resorts, Old Key West (OKW) and Boardwalk Villas (BWV), were designed to appeal to those already looking to buy timeshares and who were not spending their lodging dollars at WDW. Both resorts opened with DVC rooms. Both resorts were attempts to capture vacation dollars Disney was losing to offsite rivals.
DVC began to cannibalize its own Deluxe Resort business with the opening of the Villas at Wilderness Lodge (VWL) in 2000. This expansion added timeshare rooms to an existing hotel. The market for those rooms overlapped the market for Deluxe Resort rooms. However, the numbers were small (136 rooms) so its effect was negligible.
The problem slightly worsened with the opening of Beach Club Villas (BCV) in 2002. The Yacht & Beach Club (Y&BC) was (and still is) a popular resort. Expanding DVC there began to pull guests away from other Deluxe Resorts. Again though, the numbers were small (208 rooms).
DVC jumped the shark with the rapid expansion of Saratoga Springs Resort (SSR) in 2004, Animal Kingdom Villas (AKV) in 2007, and Bay Lake Towers (BLT) in 2009. Combined, these 3 resorts more than doubled the number DVC rooms. Rather than remaining exclusive (in 2003, DVC represented only 5% of total WDW room inventory), DVC was turned into timeshares for the masses.
With the rapid expansion of these 3 resorts, DVC kiosks began to pop up everywhere, targeting all sorts of guests, often those already spending big bucks to stay onsite. DVC began to compete directly with WDW's hotels.
It was after the opening of AKV that WDW's hotel occupancy began to decline, a decline that continued as Disney raised hotel rack rates in an effort to justify the 'cost savings' of DVC. (The same way that we've seen the price of food at WDW increase in order to justify the price of the Disney Dining Plan.)
As a result of these higher prices and expanded DVC inventory, WDW no longer is able to fill its hotel rooms. As recently as 2008, WDW's hotel occupancy was at 90%. Today, WDW has over 5000 empty hotel rooms most nights.
WDW is seeing the adverse effect of DVC, both in terms of lower occupancy rates at the Deluxe Resorts as well as in the need to offer 20-30% discounts for the majority of the year. (It wasn't that long ago that WDW never offered discounts.)
Going forward, the damage is done. WDW is losing hotel revenue because of DVC.
Converting mostly empty hotel rooms to DVC is a way to recapture some of that lost revenue. Lowering hotel inventory through conversion allows Disney to continue to charge high prices for its remaining inventory.
Unfortunately, Disney's plan signals an unwillingness to acknowledge that its hotel prices have reached ridiculous levels.
Rather than admit that WDW's hotels are grossly overpriced for what they are, Disney instead is looking to convert those rooms into timeshares.
It's sad to see a company built on growth through innovation and investment instead concentrate on petty-minded optimization.
Over 21 years as CEO, Michael Eisner grew the Parks & Resorts (P&R) business by an average of almost 11% annually. Under Iger, that growth has slowed to under 6%.
Under Iger, the focus has shifted from growth to squeezing pennies out of P&R 'guests'.