FWIW, we've been booking and staying at VDH using our SSR points. For context, we had never stayed at the
Disneyland Hotel before having/using VDH. Not happy about the TOT and we often discuss the apparent "double taxation issue" as we grumble among ourselves ... but we are still booking it. Sure, I'd far prefer booking the VGC (and do book it as often as I can find it). We tend to consume 2n/month between the two locations during the 8-9 "safe" months of our UY.
My bigger problem with VDH is having to walk through Downtown Disney. I'm just about ready to quit that practice and resort to "crossing the street" at the Grand Cal. I really hate Downtown Disney for its noise, crowds, and the (failed) traffic patterns of how guests move through the space. (They don't walk with purpose ... they meander and frequently stop right in front of you or pull a crazy Ivan turnaround ... ugh. I just want to walk-with-purpose and get
through the awful space to my destination. Where is the "fast lane" through DD?)
Strangely, I find myself preferring the walk along Harbor to one of my off-site, nearby, timeshares over walking between DL and VDH. (In my heart, I find myself disliking VDH more for its
location than for its nuisance taxation.)
EDITED TO ADD: I s'pose this begs the question, "So
why do you use your DVC points at VDH?" My only answer is because, "We already have the points. Gotta use them somewhere." We are nearly 20 years into DVC. Our original purpose for buying the points is done and we are now in the position of "
having to use the points." DLR is close enough to visit frequently. Disney has us by the pursestrings, right? Because we have DVC and
must go ... we also have an Annual Pass ("Magic Key") so that we
can go. But it you hold the Annual Pass, you feel you must get full value from that pass ... it becomes a vicious cycle. Again, Disney has us where they want us ... and thus far, it isn't so unpleasant as to warrant selling all/some of our DVC points. (Getting close ... but not yet crossed that line.)