The pros are that you get a more deluxe accommodation for a smaller price. This is more true for the one and two bedroom villas. As a DVC owner, I don't think the studios are all that impressive. They are fine if you don't have to use the sleeper sofa as a bed but if you need 2 beds, I would always choose a hotel room over a studio villa.
The cons are that you must pay in full at the time of booking. If you want the more popular resorts (BLT, BCV, BWV) you will probably have to book at 11 months out and pay in full at that time.
You cannot cancel and get a refund like you can a hotel room. You may be able to get your money back but not likely, especially as it gets closer to your vacation date as the owner's points would go into holding and would be unusable for them.
The process is that the owner must book the vacation for you. You would sign a contract. You will be given a confirmation number but the owner actually owns your reservation. You must go through the owner to book dining plans. Dining plans have to be paid for at the time of booking them.
You have to decide if the pro of better accommodations at the price of a moderate is worth the cons.
We usually stay at CBR every summer and are concerned about the refurbs going on there when planning next year's trip. We've stayed at POR and liked it but aren't so thrilled with the look of CSR....we can swing a mod but not a deluxe. I really don't know if I understand the process, but we've been thinking about renting DVC points. Can anyone explain it and what the pros and cons are? I find it really confusing! 
