I agree to an extent. But Hawaii is a once or twice lifetime trip for the average east coast person. (Or at minimum once a twice every 10 years). So there is no reason for any east coaster to own there IMO.
If it's a nice destination that many east coasters can drive to and year around potential I think it could do well. Like the Florida Keys, New York City etc..
The Florida Keys are not a very target-rich environment. There aren't many timeshares there DVC could acquire, and building new projects in the Keys is really difficult and really expensive. Southwest Florida, from the Tampa Bay area down to Marco Island, might be possible (and better than the Keys).
But I think there is a BIG question how well DVC can compete with the larger companies like Hilton, Marriott, Sheraton (Starwood), and Wyndham in venues away from WDW. Those companies have a wide variety of resorts, in both urban and vacation destinations, and that makes them tough to go up against.
Nobody beats DVC for WDW; but when you don't have that unique WDW onsite advantage, it's hard to compete with only 12 resorts vs 100 or more.
DVC didn't do well at Vero Beach, and only built part of what they'd planned. I'm not sure how they've done at Hilton Head, compared to others or to their own internal metrics. VGF is a very small property. And Aulani has bombed, apparently. (And I'm not sure about this, but I think the Marriott next door to Aulani bombed as well and was sold by Marriott.)
You may also remember that DVC considered building a resort at National Harbour, just outside D.C., and then decided against it. For DVC's family demographic, Washington would seem to be an ideal location -- great place to take the kids other than WDW. But they didn't jump in. Wyndham did and is doing well, and it's certainly possible that Wyndham is why DVC bailed out.
To me, the opportunities for DVC are mostly expansions at WDW and DL.