Unfortunately, there are timeshare laws and there is only so much legally we can do for the system. You simply can not overload the system with more points than are built into it to secure rooms.
If they just let everyone have their points back, extend the life of points, etc., then down the road, we'd be at a point where people would still lose points because there would be nothing left to book.
It is frustrating, and it seems unfair, but its going to be a tough problem to solve right now, especially given this is so unprecedented. For example, If a resort got damaged and couldn't be rebuilt, basically DVC owners at that resort would just get their share of the insurance money...and that may or may not be equal to what they had spent.
I really believe that if DVC could do everything like that and still be able to have the system function appropriately and legally, they would.