I own DVC. The benefits to a studio in DVC vs regular hotel room is that you can usually get them for less when renting points. The cost savings is the biggest pro.
Another pro is you get a kitchenette (small fridge, microwave, sink). You have one bed and a sleeper sofa so for 2 people, you get a much bigger living area.
The downsides are that it only comes with one bed so if there are more than 2 of you, someone gets stuck on the sleeper sofa. Most of them are not comfortable for adults and when they are open, they take up all of the floor space. There is less drawer space for clothing.
Also, because it's a timeshare, the rooms will not be at the same quality of upkeep as a hotel room. The linens aren't as nice, the funiture may show more wear, etc.
Another downside is that reservations must be paid at the time of booking and there's much more stringent guidelines regarding cancellation. So if you have to cancel, you may be out your $$ with DVC.
A hotel room will have daily housekeeping, renting DVC means you have trash/towel on Day 4 and full cleaning on Day 7. No daily housekeeping or change of linens unless you want to pay extra.
Another downside is that reservations must be paid at the time of booking and there's much more stringent guidelines regarding cancellation. So if you have to cancel, you may be out your $$ with DVC.
Cancellation is next to impossible with a DVC points "rental". You are really purchasing a reservation that the member made with their points from the member. So Disney really isn't involved at all. You can't call the resort to check on the reservation, but you should be able to check on it online.
The whole cancellation thing is what keeps me from renting points. When I retire and have a little more control over my vacation time, I will definitely rent points. I have stayed at a few DVC properties by booking through WDW and it is nice to have the kitchen and laundry equipment. My DD also enjoyed the community halls' activities. Right now though, I need a better cancellation policy like those offered directly from WDW.
But Disney sets the rules on cancellation, so they make it work. However, DVC points expire and availability isn't always that good, especially for a short time frame. So don't expect any better cancellation policy for 'renting' points.