Glad you dodged that bullet. I have rented directly from owners that were vetted on this site. All 3 times I was easily able to confirm their ownership on comptroller's site, personal address, phone number and a sense of who they are/where they live to make sure it made sense.
The first reservation (2 yr ago) went really well, used a contract, very prompt, thorough and kind. Would definitely buy from again. 2BR at Kidani (dedicated), no issues whatsoever.
Second go (last year), was from a BLT owner that was selling at $11/pt, which is low. She had 200 points, which is exactly what I needed, but didn't book reservation until AFTER I sent her the money. And in between that time, the availability changed (mix of dedicated and lock off 2br), and she booked it, but then offered to cancel and return my money. I figured we would be able to wait list and then work it out in time (10 months out). Well...the owner was very busy and never able to call DVC to modify my reservation. That made me nervous, but she had all of my $, and there was nothing I could do. So...I fretted most of the 11 months, and although it worked out in the end, thanks to a superior CR/BLT manager (saved us from switching rooms), totally not worth it. I just didn't believe I would be able to get an early Dec BLT ressie any other way. Oh...and she didn't want a contract (and we didn't have one). Totally worked out, but I ignored flags.
Third try (also last year), I had the BEST experience with one of the veteran owners that owns a LOT of points. Super easy to work with, lightning fast (needed quick response for a tough reservation). I will definitely look him up again for future reservations.
So...if sticking with working directly with owners results in getting the hard-to-get ressie, I will go with it, preferably with someone I have used before. If I need an easy to get ressie, would probably go through Davids. Either way, you win : )