Hi,
Yes towels are provided and they are changed twice per full week stay. On the fourth day you get a simple trash and towel service and at the end of the week you get a complete housekeeping service although these can sometimes be switched depending on your length of stay. When we were first introduced to DVC we were a bit concerned about the lack of housekeeping but once we actually stayed we found it wasn't a problem and it's actually quite nice not being disturbed. Oh and yes you do get Disney toiletries.
I think you can ask for more towels in between the trash and towel/housekeeping days, but I think you have to pay for the set. Or, if you're in a 1 or 2 bedroom you can always use the wonderful washing machine and dryer provided!!
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