Ah, now you've caught on to Disney's diabolical plot!
Though transitioning rooms from hotel to DVC makes sense. All things being equal, every dvc contract they sell means one less hotel guest. Ideally Disney wants to keep growing the DVC membership AND adding hotel business, but that's easier said than done. Overall they are still in a growth mode with new DVC additions/conversions joined by Art of Animation and Coronado Springs on the hotel side. But I don't think it's realistic to add 300 new DVC villas every 2-3 years AND maintain (or grow) their hotel business.
Bottom line: Demand for WL will drop as many of its fans buy into Copper Creek. The new and old villas are bookable by cash guests. But yes, Disney would like nothing more than to be able to charge more for WL hotel rooms given the smaller supply.