This discussion took an interesting turn!
In the long (and short) run, it's looking more and more like DVC is a huge rip off bought retail and financed.
Resale paying cash makes sense if you have $10,000-$15,000 in the bank on top of other savings for emergencies and retirement. Also need to have $80/month to painlessly send away for main. fees. Still, you can stay at very nice resort for a week every year at Disney for the cost of maintenance fees alone and rent points around $11 a point if mods or bonnet creek etc. don't cut it.
$7 a point over life of the contract vs $11 a point resale. About 38% off. Nearly 48% off vs $13 a point.
Or I could pay $700 or less for a 1 bedroom at bonnet creek for 7 nights vs $1,500 a week at old key west based on $7 a point and 217 points for a week.
So DVC purchased resale and not financed is still double the cost of similar non-disney accommodations located on site. That's what gets me!
As you can see, I'm pro resale for DVC and pro off property for many people due to cost and to the added options for non DVC trips in other areas. I also have the belief that off property is not as different (done right) as many think it is. There are certainly many people who feel as you stated in this post. However, I still feel DVC has it's place for some and that there are worse choices in life than buying retail in spite of what some thing about my position. The truth is that I will consider a small to moderate purchase coming up when GF comes on board depending on specifics because it won't be available anywhere else, will be hard to get into I believe and is unlikely to save money buying resale for the same location for some time if ever. I'm not optimistic the numbers will line up and it's unlikely I'll purchase but I will look at them and consider it.
IMO, one of the things that gives DVC a better value is it's flexibility. While there are those out there that will say DVC is far more flexible than everything else across the board, this is simply not true. You really have to look at the context and situation. However, when it comes to staying at WDW, needing different sized units, staying odd and varying lengths and changing your plans at times; DVC is the most flexible I am aware of for the average member (non VIP with other points systems). For those that fit into that situation, DVC's value rises and the cost for many other options increases modestly (in comparison). Thus for one who generally goes in increments of a week in the same size unit most of the time during the same time of year, DVC's value in comparison falls dramatically.
The truth is that I feel that for many owning a smaller DVC package and non DVC timeshare (esp another mini system) is the best mix of cost, value and options.
Let me also go back to your impression that DVC is double. While it is more, I don't think it's quite double for the small player. There is an economy of scale for non DVC timeshares and certain situations that does not exist for the person getting started. Just to pick some situations, here are a few comparisons for someone looking at this small time, say a week a year in Orlando in a 2 BR at a nice place for summer. I'll use rough numbers but I think there really very close.
DVC SSR resale $15-16K with fees around $1500-1600 a year in fees (300 points)
Bluegreen resale - $500 with yearly fees $1100 (18K points) or so plus maybe another $50 a year (averaged) for banking fees and cancelation fees. This will get you a week a year in Orlando any season at the top resort in the best non presidential suite. It will also give you the option to trade in to DVC for a 2 BR, add another $284 currently if you do. It also gives you direct access to other options and a much better trade option than using DVC for non DVC locations.
Wyndham 2 BR deluxe at Bonnet Creek roughly $1000 (224K points) inclusive to buy in assuming you get a good contract, maybe less if you get a resort that has higher fees. Yearly fees somewhat variable but roughly $1000-1200 a year. All the other statements about Bluegreen apply pretty much the same.
Marriott - buy at Grande Vista $3K (or less if you try) with yearly fees $1000-1100. Add II membership (?$89/yr) to it if you plan to trade and $109 currently if you trade to another Marriott, $189 for non Marriott. You do get the option of 2 trades a year instead of one though. Worst case scenario would be $1300 a yr currently for one week. For most GV contracts you can also reserve at the other FL club sites and can do 3 & 4 day stays instead.
Marriott other places and trade in could be as low as $2-300 purchase including closing (assume $600 or so) and yearly more in the $900 range for the one I'm thinking of and up to $1200 if you trade to Orlando one week a year though you might trade for a 3BR instead of a 2BR.
Marriott trust points simply too high for this purpose.
RCI points maybe $1500-2000 purchase for enough points with good fees and yearly fees very variable but where mine are would give you fees roughly $800-850 for around 100K points which should get you into any 2 BR anywhere except DVC and would be enough to get you every year with DVC about half the time. Add yearly RCI points membership under $100, exchange fee $139 and for DVC, $95 resort services fee. Roughly $1100 a year with direct access to the entire RCI inventory (points and weeks).
There are many other options but these are some of the more simple and better choices and are ones I know enough about to at least be coherent. So for this comparison that favors non DVC options and negates the current flexibility of DVC, DVC is close to double (likely a little less than double without running the numbers) if you factor in the time value of the up front costs and the higher fees. Given the other benefits and flexibility to DVC, I normally look at it as about 30-40% more. Historically the up front costs haven't been as dramatically different as they are now so the last couple of years have skewed the numbers to favor non DVC even more. DVC also gives many the ability to avoid a rental car and there are a few other added value perks (pass discounts).
Thus, IMO, DVC is still very reasonable if you meet certain situation requirements and on property has value to you and yours.