We are so spoiled for space and amenities with timesharing. "Deluxe" Disney hotel rooms commonly offer bedding for 5. For Disney to decide to offer this in DVC studio units is wonderful for many families.
Everyone is different. When our children were pre-adolescent, our family of 5 mostly vacationed in a pop-up camper or hotel rooms. Either way, we
enjoyed these travel adventures together. Having a single, private bathroom was no problem - not having to go outside to get to it at night was actually a real plus!
Once the kids became 'tweens and we had more fun together when we included their friends in our travels, we valued the space of a 2BR or larger unit with at least 2 baths. That's just our experience.
We once spent a week in a Boardwalk Villas studio since it had a kids' daybed. We enjoyed the resort plenty but did little inside the room other than sleep/nap and shower. We enjoyed ourselves. Our kids were very well-behaved and did not put undue wear-and-tear on rooms. There's really no reason to diss people's decision to vacation this way.
For us, despite many DVC and central Florida vacations, the Disney transportation and proximity to the parks were and are the main draws for us to stay at a DVC resort. We do enjoy the Disney resort themes and amenities. But the WDW DVC
resort activities are
not as extensive, the rooms are
not as luxurious, and the closest restaurants are
not as good value for our restaurant dollars as what we have found when staying at the nicer offsite resorts.
Both at DVC resorts and at the better offsite resorts, I can enjoy my morning coffee on a balcony with lovely views of Florida landscaping, a water feature, a golf course, beautiful buildings, or a fireworks view at night. As at other resorts, a few DVC rooms can even overlook utility areas or parking lots, or hear road noise (including bus traffic!) from beyond a few trees.
While the handy transportation keeps us coming back when we are able to get the exchanges (our family now consists of 4 adult couples), we actually enjoy our resort time more when we stay offsite. I totally get the idea that people who have enjoyed offsite vacations are excited about a DVC exchange for the sake of the convenient transportation and they want to focus on that when trading into DVC. I don't think that they are "missing out", especially if they get all the theming they care for at the parks. My DH tires of the Disney marketing machine when staying onsite. Just my opinion. To each their own.