I am surpised you were able to get a villa this close. I think the crowds do taper down toward the end of the week. I don't have much to compare but it is busy.
Many
DVC members (such as moi in NYC) reserve President's Week 11 months out (or at least very early) because we know for sure our kids are off that entire week and would love to get away from the cold in February.
However, airfare that week from NYC to MCO is astronomical! So, unless the member manages to snag their tickets during one of those 24 hour airfare sales or works up the courage and energy to drive before the 30 day penalty kicks in, they may cancel the trip entirely. We are approaching mid-January so the timing of availability seems logical to me.
We have done this the last few years. Made the reservation in March for Prez Week but held off on actually committing to the trip until we secure the airfare. For people who have make multiple trip to WDW and are use to paying anywhere from $105 (2001/02) to about $175 rd trip/pp, we have a cut off amount for airfare that we are willing to spend, above which we will just cancel the trip.
Driving use to be an option if the airfares didn't drop. After more than 10 long distance drives round trip to FL, without and then with kids, we no longer want to make the drive. Lol. This happened a few years after buying into DVC and always wanting to stay on-site! DH has limited vacation days so we don't want to waste them driving and for trips without him, I would never drive alone with 2 small children.
For Prez Week 2006, I managed to snag airfare during a mid-December weekend sale for around $200/pp. Fares without the sale were over $600/pp.
For Prez Week 2007, I managed to buy my tickets a little earlier - in November for $224/pp on Delta. It's the highest I've paid in a long while but I think it was a decent fare for such a peak season. The times were decent too - there were brief sales around that amount on other airlines but they usually had late, late outbound flight and super early return flights. "Normal" fares for that week over the past year flucuated between $450-$600/pp. I had to check the current fares for my flights (schedule changes) and they were $800-950/pp!!!!
I imagine a lot of people either drive or cancel about now if they weren't diligent enough about checking fares every day!