I agree with you DannyH. According to Beejie, the OP's later posts in this thread, the DVC member holding the party isn't even offering the kids
drinks or cake. So it would seem in the given scenerio that the Member did
fork of the $$$ for membership but isn't willing too fork over the $$$ for Blizzard Beach. Seems a little bizzare to me the whole thing, but you're right that Blizzard Beach would be the better scenario, regarding entry to the resort (if it's as difficult as others have stated) and CMs wouldn't be helping a member break rules and no unhappy children.
As to DMRick statement about what DVC owns. DVC is it's own group in the Disney family of companies. Beach Club Villas is owned by DVC and is adjoined to a Disney resort but DVC has it's own MS lines to reserve those villas at BEach Club. SAB is the theme pool attached to BC,BCV, and YC. If my understanding is correct. Also, DVC members pay maintaince fees yearly for the upkeep of the BCV and it's pools, which would include SAB, yet SAB isn't exclusive to BCV, but the enitre BC/YC/BCV area. However, DVC members are only allowed to visit SAB if staying at BCV and are supposed to abide by the rules for use of the pools as any other resort guest staying at BC/BCV/YC resorts. DVC members have, to my knowledge, no special preivledges regarding use of SAB.
~DW