I own DVC. The benefits to a studio in DVC vs regular hotel room is that you can usually get them for less when renting points. The cost savings is the biggest pro.
Another pro is you get a kitchenette (small fridge, microwave, sink). You have one bed and a sleeper sofa so for 2 people, you get a much bigger living area.
The downsides are that it only comes with one bed so if there are more than 2 of you, someone gets stuck on the sleeper sofa. Most of them are not comfortable for adults and when they are open, they take up all of the floor space. There is less drawer space for clothing.
Also, because it's a timeshare, the rooms will not be at the same quality of upkeep as a hotel room. The linens aren't as nice, the funiture may show more wear, etc.
Another downside is that reservations must be paid at the time of booking and there's much more stringent guidelines regarding cancellation. So if you have to cancel, you may be out your $$ with DVC.
A hotel room will have daily housekeeping, renting DVC means you have trash/towel on Day 4 and full cleaning on Day 7. No daily housekeeping or change of linens unless you want to pay extra.