Think of it this way: the Contemporary Resort, and by that I mean the tower itself and the garden wing, is a hotel; Bay Lake Towers, the tall building adjacent to the CR tower, is a condominium complex. You can rent a room in either, but it's best to think about what you personally expect from your accommodations while on vacation and judge accordingly. The CR tower and garden wing rooms will be regular hotel rooms or suites. That means you get a room, daily housekeeping, a mini fridge, daily replenishment of towels and toiletries, and a short elevator ride to food and shops. BLT rooms are studio condos, 1- and 2- bedroom condos, and I believe a larger 3-bedroom is available as well. That means you get a full kitchen, weekly housekeeping, replenishment of towels every few days, and an elevator ride plus a walk across the skybridge to shops and food. They're two different categories. Do you want to cook meals and stock groceries on vacation? Do you want to clean up after yourself on vacation? Do you want it to feel more like home or an apartment while you're at Disney World? Then BLT is a good option. Do you not want to fool with cooking? Do you want your beds made and bathroom cleaned while you're at the park each day? Do you want a traditional hotel experience? Go with the CR.
I say this cause I see a lot of folks on Disboards who classify the DVC resorts as basically a more affordable Deluxe resort option, and that's simply not the case. Renting DVC points gets you a condo, not a hotel room. I personally couldn't consider buying or renting DVC for that reason (I refuse to cook on vacation and I definitely am not cleaning or making beds either -- that's what I'm paying for!), but for others who don't mind those things and want more space it sometimes makes sense for them. While the advantages and disadvantages to the DVC condos differ depending on the resort you choose, the CR tower and garden wing rooms are quite spacious, so you wouldn't be losing anything by staying at the hotel itself as opposed to BLT. That's apparently not the case at other resorts. BLT feels very apartment-ish to me, to be honest, so you might feel the same way.