Is it? I don't think so, not in my case. I deal with a large corporation like Wyndham because it has around 100+ locations I can choose from, some of which I already knew I'd return to again and again. But with a large corporation like Wyndham I expect even more to be treated like a number, to receive a canned solution not tailored to my individual needs, to pretty much rely on myself to know every detail and only reach out to their generalist customer service after I've exhausted every other option to find an answer I need. I wouldn't expect any corporation to protect me and handle all the details for me.
I can only say what I've seen when a handful of other HOAs have closed or left Club Wyndham (one at Villa Rica, one a year or two ago at Pagosa, I think one at Fairfield Harbour, the affiliate Club Destin), and those owners had surely experienced the same upsells to VIP levels and the like, and they got no swap offer. They lost their points, and VIP levels where applicable. Who cares if owners could prove the reasons they purchased were upsells to VIP? Nowhere in the governing docs is there an exception to the processes for what happens when a resort leaves the points system because someone wanted the next VIP level. Wyndham certainly didn't offer CWA swaps this time out of the goodness of their heart - it was definitely a business decision - but they did have a choice. They could even have weathered the bad PR as long as the financial bottom line was solid. If they cared so much about bad PR they'd be handling the communications element of these closures much better. So I'm guessing it was more of a financial bottom line decision than a PR one.