There is another reason---apart from low occupancy---for converting hotel rooms to DVC units. It moves future travel-demand risk from Disney to DVC Members.
There was a very big change in Disney's resort development strategy right after 9/11. Disney begrudgingly finished the second half of POP, but only after a decade-long delay during which they figured out that they were under-serving the large-family market (and in a time where family sizes are slowly growing again.) But, they've been falling all over themselves building new DVC inventory and converting hotel rooms to DVC units.
Why? 9/11 scared them to death. Unlike most of the other Disney resorts that have a huge population within easy driving distance, WDW relies almost entirely on air travel. Any long-term disruption in that (say, $200bbl oil---which could easily happen sooner rather than later if the OPEC strategy of starving high-cost producers works) is a really big deal. Selling long-term commitments when families are optimistic reduces WDW's risk if a pessimistic tone takes hold. Those resorts are guaranteed to be in the black unless owners start defaulting en masse.