All of what you've said i'm sure is true. Like many other
dvc members who calm down after the first few trips they find themselves not returning to the parks and spending their money outside the property because there is no connection with discounts or trade-in's to obtain passes. It just cheeper to stay inthe hotel and play outside the property.
In all honesty, DVC gives you a GREAT discount on APs. We've been coming to Orlando two to three times a year for the last 5 years, but the beauty of it is if it's only to Disney (not a Disney and beach combo like we do in the summer), we don't rent a car. That more than pays for the park tickets if we look at the cost across multiple trips. Plus, with APs, you can buy a Tables in Wonderland card, which gives you 20% off most restaurants for a year. We save a considerable amount that way, too.
We seem to be alternating between 10 day non-expiring passes through
Undercover Tourist or the APs through WDW.
UT does save you money over buying direct from Disney. When we use the UT tickets, we generally only do 2 to 3 parks per trip. Plus, we get 10 water park credits with those tickets, which we definitely use. What i've also beem trying to do is buy one ticket at to time to spread the cost, because you're right...they are expensive.
Lastly, time to time, I am tempted to bank my points and take advantage of free dining or room dicounts specials (Disney property only). But, when I put pen to paper, DVC is still a better deal.. Granted, I am sure there are amazing bargains off property, we just have never looked since we rarely rent a car.