In many cases with a sold out resort, the current owners are happy with how they have been using their home resort, and when Wyndham comes in, the current owners have no interest in acquiring Wyndham points. Especially when there is a high fee to do so, and it may actually reduce their home ownership rights.
For instance - I own 7 Ocean Front weeks at Wyndham Kauai Beach Villas. If I converted them to Wyndham points, I would lose my priority to reserve my ocean front weeks: I would not be able to make my reservations as early as I do now.
I have no need for Wyndham points at this time, so converting doesn't interest me, and the high cost is ridiculous.
*If I could keep my (same) home resort reservation priority, and if it was inexpensive to convert to points, I'd at least consider it. In other words: I want to have my cake and eat it too!