Actually, on a 1BR (except AKV Value), DVC will take 5 + 1 under 3 (for a total of 6). Yes, including BCV, BWV Std which all says Sleeps 4.
Yes! DH and I grumbled about this for a long time as well. It's like all vacation packages are good for a family of 4! So, my then family of 5 is stuck in a bind. This is one of the reasons I started looking into TS/Vacation villas, because renting 2 hotel rooms for our family is crazy, and expensive.
Now, we're a family of 6, so we're obviously too big for a 1 BR and will be moving to a 2BR. For hotel stays, we're still trying to find those rare hotels that have 2 beds and a sleeper sofa.
Ron, I wish we all had as many points as you!

We only have a few DVC points, so we'll stretch it as much as we can (1 more year!). I'm sure there will come a time when my kids will want nothing to do with us, and have their own beds/rooms -- at the moment, we treasure our vacation time because this is the only time we all cuddle