Truthfully, with the reasonable room rates in Vegas I wouldn't use my points to stay. Although rates do vary greatly, depending on convention bookings. Check out all the hotel websites, you'll probably find a good deal in a hotel you'd like.
For instance, in November I was able to book a really nice tower room at Palace Station (off the strip, you'll need a car here) for $39 a night. While there, I signed up for their free "slot club card". Now, we don't gamble much, but because of the slot card, I received a post card special for the last week of April...1 night free, three more nights at $20 each.
During busy season these rooms are $75 per night, still cheaper than trading out a week of DVC points.
I agree with the previous posters. I think it would be a huge waste of your points. I go to Vegas several times a year, and for the last several years haven't paid for one night's stay. If you play your cards right (pun intended, lol) you too can reap this benefit.
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