What you read is correct. You must own at least one contract that was purchased directly from Disney or a grandfathered resale contract to book a DVC member cruise, even with cash.
The policy changed sometime in March 2011.
As long as members keep booking the cruise(s), the restrictions will stay in place but Disney will change the policy when they need to fill cabins.
I suppose that could be true, Bill. But with the membership growing I wouldn't be one to bet on that every happening…..