I was recently told that the points are negotiated and set at the beginning of the year and they will not change. The discounts like kids sail free do not apply when using dvc.
Not only are there no discounts, but you can't get the same OBC offers as those paying with cash. You also pay a $95 fee to use your points and have many restrictions put on your points in case of cancellation. That's not even talking about the high points charged for the cruises in the first place.
In 2007 I had a reservation and my sister in law at OKW and she canceled on me past the deadline so my points were then turned into reservation points. I did not know what to do with them when I noticed DVC had western and eastern carribean cruises that required less points than usual. I jumped on it and used my reservation points. I have not seen the same point reduction special again. The cruise was in September so maybe in was because of hurricane season. I don't know but it was a great way to use my reservation points!