Financially, yes, there is no doubt that it is a poor use of points. Generally your points can be rented for $11-14/pt. When you compare the needed points to stay at a moderate or a budget resort to the cash needed for the same stay, you will see that you will be better off renting those points and using that cash for the stay. Even better, you can often get the room for a discount, so you will have even more money in your pocket to pay for tickets, meals, airline, etc.
Many members who have bought direct and have the ability to use their points for these options prefer to rent their points because of the savings.