I agree with BWV Dreaming, if there is higher saturation at the resort compared to current amenities it will affect usability but any extra costs will be shared among more people as well. I doubt it'll make any difference. The other issue is it makes an extension at VWL more likely down the road.
That's my understanding but the sleeping capacity, and more importantly, the per room usage might be different compared to the rooms removed from service. This could be more or less depending on specifics but from what I've seen, timeshares tend to have a higher density per room than do hotels in general from what I've seen and info from BWV and BCV discussed a few years ago suggested the same was true for DVC. So it might add some with the same number of sleeping spaces but it shouldn't be a lot if it does other than the cabins.
WL also was not always booked at capacity; DVC attempts to maintain a high capacity that may be higher than what was actually being achieved in the hotel.