Bill, ... "The system as II & Starwood has designed it, is wrong and clearly illegal."
"Wrong" sometimes depends on your point of view. I am sure that Starwood sees removing reserve first;then deposit for all Starwood properties as leveling the playing field. Now, non-SVN members will be on the same footing as SVN members in making reservations through II.
There might be many SVN members who appreciate that. I am one who does. Moreover, your initial point is still valid - that reserving "prime" weeks only by those who want to use the "prime" week after reserving it might make it easier for everyone, SVN and non-SVN, to reserve in those weeks. Is accomplishing that "wrong?"
So far, it looks like all weeks in a season will receive the same trading power designation from II because Starwood will give II a designator by season. If that happens, there would be no need to race to reserve a "more prime" week because that week will get no advantage over other weeks in a season.
But, even if the weeks within a season receive different trading power allocations, wouldn't that just be a reflection of the true value and, most likely, the purchase price on the resale market for those weeks? I have always been advised to purchase where I want to go and at the time (or at least in the season) I want to go there. So, I have. Those who didn't have violated one of the more important rules of buying timeshares.
But, even more than designating the new II procedures as "wrong," you go on to say that the new procedures are "clearly illegal." What law do they violate? What right of ownership do they violate? What part of the declaration governing any of the Starwood associations do they violate?
As I see it (and, BTW, I am an attorney and a non-Starwood ex-association board president), Starwood has convinced II that it is in II's best economic interest to change its policy and accept all Starwood deposits through Starwood. II surely can do that if it wishes. II can even go out of business if it wants to.
As barndweller has pointed out, if you don't like the new II rules for depositing Starwood timeshares, don't use II. And, if II can't change its rules for depositing, I'd really like to know what law, what right of timeshare ownership or what declaration II is violating by changing its rules for depositing timeshares.
... eom