There is one type of situation where I think there has been legitimate conflict between
DVC owners and cash customers, although it's not the issue cited by OP. It's the issue of DVC points-stay guests being "walked" by hotel-connected resort management.
In those cases (and I haven't seen one in recent months, but we had a bunch of them a few months ago), DVC points guests arrived for their confirmed reservations and were told there was no room at the inn. They were moved (arbitrarily and without their consent) to alternate resorts/hotels by the resort management. In some cases, the guests received compensation they considered adequate; in other cases no compensation was offered or given. "Too bad, so sad -- forget your confirmation letter, we don't have a room for you."
This phenomenon has only reared its ugly head at
hotel resorts (most frequently VWL), and considering the fact that the hotel management runs the front desk, one has to wonder
whose interests they were looking out for. It seems like they were looking out for the
hotel's bottom line, despite the confirmed DVC reservation, and walking the DVC guest.
I personally think the "CRO has availability, but DVC doesn't" situation is either a bogus issue, or a case where someone just doesn't understand the system.
But I think the pattern of "walking" DVC points guests to lesser accommodations (to make their confirmed villa available for someone else paying big bucks cash) really needs to be looked at. I think it's a clear case of conflict of interest where the hotels' cash flow is taking precedence over the owners' confirmed ressies.