As I posted earlier in this board, I believe this is truly about allowing non-declared rooms at new resorts to be swapped for your points plus some amount of cash. Your points are not technically being used at 12 months to book a
DVC room but instead you are trading your points to DVC for some cash value to book a non-declared room. Those non-declared rooms are already available for cash reservations and do not impact inventory of rooms that are declared already for DVC bookings.
WRT HHI - I think this is about them being able to ROFR HHI contracts at low prices. Then they can trade those “cheep” points to you for your “expensive” points at the newer resorts. All this is while they a providing a “benefit” to direct membership.