We very much prefer the automatic wait-list and have been pleased with the results. With auto wait-listing there is no need to worry about phone messages being lost or misdelivered or possibly not returned within the time limit specified to secure the villa you need. This method works great if you have enough points available to cover the reservation.
We seldom use the method where they call you but when we do it's only because we don't have enough points to cover the wait-listed days we need and have to decide which days to cancel on another reservation. This happens only when we have friends or family staying on our points and the resort they prefer is not available. When this happens we try to swap the reservation for another resort and have to decide on-the-fly how to best deal with availability as the wait-listed days become available.
If you can...choose the auto wait-list...much less likely to accidently miss an opportunity to confirm the villa you need. Good luck.