I'm so, so sorry you were treated that way.
I give DVC a lot of leeway and am a borderline apologist, but what you were told and the way you were treated is LUDICROUS. Tickets, discounts, parties, lounges - all fair game for non-direct buyers to have and not have at the whims of Disney. But a functioning website to utilize the points you rightfully own which have the same exact value as direct points when you're booking (a room is x points per night, not x resale or x direct) isn't a perk. It's not a benefit. It's a necessity. And to be told otherwise is maddening and just plain wrong.
My company's founder told us he sent certified letters to fellow CEOs and heads of customer service when he had a bad experience. I used to laugh and roll my eyes, but if I was on that phone call Terri Schultz would be getting one from me toot sweet. Along with a footnote about notifying Florida regulators if there isn't a plan for fixes/an alternate resolution in place that allows owners (which you are) to do the very least we are entitled to do - book a darn room.
Editing to say: I know that last part may seem hyperbolic and harsh, but come on -- it's been long enough. The website doesn't work, so we call. When we call, we're told to go to the website, which doesn't work, or are on hold for sometimes hours, by which time the room is gone. Or now, we're getting the runaround from CMs (many of whom are well intended, I'm sure, but pegging this as a function for resale contracts?! Unacceptable).