We stayed at Waiohai several years ago. Looking at the above pics, I had no idea that the unit we were in was likely an ocean view (we could see a sliver of ocean).
While we lover the resort and the beach, we weren’t so fond of its location I relation to everything else.
This is an older resort that was likely sold out before the DC came into existence. I don’t know the exact answer to your question, but if I were to speculate, I bet owners staying on their own time will receive preference over everyone else, including those renting from owners or DC reservations.
If a view is important to you, Kauai Lagoons might be the better choice...... if that’s an option. Otherwise I’d be more likely to use DC points, just because there’s no middle man and DC points reservations are “suppose” to be considered owner reservations instead of exchanges. I still find that when I make a DC reservation, I might be considered an owner reservation, but it’s second class to an owner that holds a deeded week at the resort. This is my assumption based on actual units received at DC reservations vs unit location when staying on our own time at deeded resorts, including a few reservations at Grand Chateau as either the deeded week owner bs using destination points for Grand Chateau. Although there are other factors which could affect placement as well, such as full week vs partial week. Still, as an owner staying on our time we’ve always been placed in a high floor whereas as DC point reservations it’s been more of a mid level floor.