Not sure about the discounts but you can use any points bought direct for a room at the regular WDW resorts (though it costs a lot of points). You can also use any points bought via resale before, something like, March 2011...anything bought via resale after that cannot be used at regular WDW resorts, the cruise line or concierge.
I'd like to know if
DVC gets discounts at Swan and Dolphin...or if PAP holder gets discount there?