You are correct. However, the end game is not to restrict supply. No developer has ever found a way to do that, because (a) it is a game of whack-a-mole and (b) the money is enough of an incentive for the pros to keep moving to new holes.
The end game is to collapse demand. The way to do that is to cancel some rentals---at the last minute and very publicly. It has worked for other developers. It will work for Disney if they choose to do it. And based on the langauge they are using, it sure seems like they are lining up the ducks to do so.
It's worse than that (or better, depending on your point of view): If a handful of very vocal guests complain about last-minute
DVC rental cancellations, that will
taint the entire market. All a prospective renter knows is that the could show up after a long day of travel to find that they don't have a room. That translates very quickly into constant reminders in the Disney online ecosystem that "
DVC rentals are risky."
It does not take very much of that before the demand for
DVC rentals drops precipitously. If you think this won't happen, go take a look at the
we loooooove Club Wyndham Bonnet Creek thread on the Orlando Resorts board. It's long, and you might have to hunt around for the right point in the thread where it turned, but it is definitely in there. At the beginning of that thread, in the mid 2010s, it was the absolute darling of the offsite folks. Now? "It's too dangerous, don't risk it." In the meantime, a few of the very high-profile Bonnet Creek renters finally went out of business.
Wyndham tried many (many!) things to restrict supply, and had been doing so since I became an owner more than 20 years ago. Limiting (and eventually eliminating) point transfers, instituting very strict guest certificate rules and fees, eliminating developer perks on resale bookings.
None of them worked. Cancelling some reservations at the last minute worked. That combined with the targeted freezing of some very high profile renter accounts pushed a lot of landlords out of the public rental market. It is hard to fight a big corporation when you have a montly maintenance fee nut to make and suddenly cannot make any new reservations or put any guests names on existing ones.