I don't think LV is in the top 3
family vacation spots. It is a different market, as MGM and Wet & Wild found out. Sure, the land they occupied was worth a lot of $$$, but if the parks had been doing a land office business, it wouldn't matter what the land was worth, they'd still be profitable and operating. A tourist destination is not necessarily a
family destination.
DVC trades through II, for full weeks. LV is not normally a full week destination. 3 or 4 days tops for most folks, even convention people.
Also, designing those
point charts...DVC is already traditionally heavily loaded on weekends pointwise, and most LV visitiors are "long weekenders" Would it be worth a weekend stay on heavily loaded points? Not to most people.
If the
point chart wasn't heavily loaded on weekends, the resort would probably sit empty during the week, and be next to impossible to book on weekends. LV is just not a good fit, IMO, for DVC.
Also, some folks buy DVC looking to (at least occasionally) rent their points and use the cash for other destinations. Even the current $10+ per point rental seems high for LV, even if it was the same point chart as VWL.
There is already an II trade option to LV and most folks still chose a few nights on cash at a Casino resort rather than trading DVC for an II week in LV.