Rebalancing them again in such a way is sure to kill future sales in an already leery buyer's market. As of now, DVC is stuck with 4 resorts that haven't sold to expectation: BLT (supposed to be sold out within a year, now going on year 2), SSR (sold amazingly well for years, now stalled out with THV additions), AKV, GCV (another supposed to sell quickly but not).
Of course, I'm still waiting for DVC execs to realize we're in the middle of a recession with taxpayers facing down the possibility of more lost jobs and increased taxes. I think they consume too much pixie dust.
Oh, I think you're reading far too much into it.
A lot of what you describe is just DVC Guide (salesperson) hype. There's a reason that DVC only built 50 villas at the Grand Californian. Even in a good economy, the Bay Lake Tower was never going to sell out in 6-12 months, or whatever crazy figures were floated. If that was the case, DVC would have increased the price sooner and probably had a higher starting price to begin with.
I'm sure they were forecasting record highs in profitability for the 2009 fiscal year before the economy went down the tubes. But there are still millions and millions of US residents gainfully employed. DVC certainly isn't ready to close up shop.
In the 13-14 months since the stock market tanked they've sold about 30,000 contracts. The number of contracts they sold in FY 2009 (which ran Oct '08 to Sep '09 and included BLT and VGC startups) eclipsed the prior FY by about 10%.
Prices have also been a bit higher for the most part. Throughout most of 2008 the prevailing price was $104 less discounts of $8-10 per point. In 2009 the base price was $112 with discounts ranging from $5 per point (including initial BLT and VGC sales) up to $15+.
Now BLT is up to $120 per point with a discount of just $8 off. Good economy or bad...reallocation or not...make no mistake--people are still buying.
DVC won't open a new resort until 2011 (Hawaii) so they are in no great rush to sell what is available now. They'll spend the next 12-18 months balancing available inventory with pricing to maximize profitability. Selling less product at a higher price is typically more desirable than the opposite.