Yes you can use your points to stay at the resorts but the points needed are high, more than at a DVC so not a good way to use your points. A rough guide is almost double points per night.
I agree that it is NOT a good deal for using points, but everyone's situation is different and if you want to check you can look at the member web site
under "Vacation Points Charts" and "The Disney Collection". (Or in your guide book)