If you want to stay at another Disney hotel then it's not the best use of points. You'd be better off renting them out and using the cash to pay for your resort stay.
.....So for me, it made absolute sense.
Remember though that any income from renting points is taxable, which means it isn't as good a deal as you'd think. I lost 40% in tax and had I rented out my points and used the prcoeeds to pay for my GF stay, it would have cost me more money than I made. So for me, it made absolute sense.

I really don't think it matters when others say it isn't a good use of points. What matters is what is good for each person. We used nearly a year's points to stay 3 nights at the Grand Floridian Royal Palm Club.
Many people told us this wasn't a good use of our points but we had the points available and for us, it meant we didn't spend a penny when staying there - not even food as we're not large eaters and ate from the Concierge Lounge.
It is up to you what you do with your points.
We're doing a DCL Mexican Riviera cruise and wanted to extend the vacation to include an LA stay but it was looking like it was going to cost an arm and a leg! Luckily, we were able to book 2 of our 3 flights with VA using Flying Club miles and the DVC points took care of our 6 night post-cruise stay. When I think of the cash we spent going to GCH for NYE in 2005, I'm over the moon we finally bought into DVC and, as long as you're using them, IMO there's no wrong way to enjoy the points... 