I have never rented out my points, but I have been researching HHI. I originally started researching the DVC there, but since we are trying to save this year's points for a larger trip next year, I would be paying cash (unless we go later years, at which time I was worried about getting something at 7 months out). The cash price for a week there the first week of June is about $2800. Two friends go to HHI regularly and rent houses. One is a DVC member who toured the DVC property last summer. When comparing it to renting a house in Sea Pines, she highly recommended Sea Pines instead.
I am now finding 3 bedroom houses with private pools for $2500. So if I were you, I would at least consider renting out your points and paying cash for a house rental in Sea Pines. I love to research trips, so I will share with you my research findings based on our criteria:
1. pool on site: Sea Pines wins since it's a private pool
2. things for kids to do: DVC wins this one since they have all the activities. However, I'm told that Sea Pines has many kid-oriented activities too, just not every hour during the day.
3. bike riding: Sea Pines wins. I'm told that Sea Pines has amazing bike paths and that people don't drive anywhere (and some house rentals include bikes). You can ride bikes to the beach and to Harbour Town. While you can rent bikes at DVC, it is in a more commercial/industrial area, so you are limited as to where you can ride them.
4. Nice spacious lodging: Sea Pines wins. While DVC is big enough (though smaller than a house), a private house beats the reports I have read of the DVC lodging where you can hear the people above you walking.
5. Price: Probably doesn't apply to you, but since I would be paying cash, Sea Pines wins again.
6. Availability: Sea Pines wins. There are plenty of houses available right now, so I suspect that even if I wait until 7 months out, it will be easier to find something at Sea Pines.
While proximity to the ocean was not a factor for me (we prefer a pool to the ocean since we have a toddler), both require commuting to the ocean. At DVC, you can choose to walk, drive, or ride the shuttle. At Sea Pines, it depends on the house's location, but I would expect to drive, walk, or bike there. I also hear that the food at DVC isn't very good, but I hear that there are many great options in the Sea Pines area. The only downside to choosing Sea Pines is the kids' activities. I am a little sad about that since I know Disney would do a great job with activities; however, I think the other factors outweigh this one.
I hope this helps. I don't mean to confuse the issue since you were not asking about Sea Pines, but since I was originally sold on going DVC but worried a bit about getting in at 7 months, I thought I would share my research findings.