You buy a home resort. This gives you two things. One, it determines what dues you'll pay - some resorts are cheaper than others. Two, it lets you book that resort with a priority window (eleven to seven months). (It gives some people another thing, a sense of ownership and the pride associated with that - and if you want, you can participate in the resort vs. resort cagematches that occationally break out around here).
At seven months "points is points" and your points are good anywhere - subject to availability. Some people have great luck getting a non-home resort at seven months, some people have less luck (early December looks to be really tough this year). It depends on where you want to stay (larger resorts are typically easier than smaller resorts to get into) and when you want to stay (early December has always been tough, summer is easier), and what sort of room you are booking (Grand Villas are tough as is AKL Concierge). You'll have paid the dues for your home regardless of where you stay, so if your heart belongs to a low dues resort, it isn't smart to own a high dues resort.
You are also able to stay in SOME non-
DVC resorts - the ones that don't have a DVC attached and are moderates or Deluxes. But these are a lot of points and have a fee associated with the transaction - so it isn't something people around here recommend as a "good use" of points.