It isn't an either or. Those are not the only two types of WDW vacations by any stretch of the imagination
Exactly.
I own a small DVC contract and enjoy staying onsite in studios. It's nice to have access to EMH, early FP+ and a few other onsite perks (the
DDP has never worked for my situation).
I also have another timeshare that I can easily trade for offsite timeshares near Disney. In Dec 2017, I spent a week in a 2BR/2BA villa at Marriott Grande Vista with granite countertops and stainless steel appliances in the kitchen...and the cost was about $40 per night plus tax. My group usually ate breakfast at the resort then headed out for the parks, trying a lot of different dining options (Biergarten, SciFi Dine-in Theater, Flying Fish, Boma, BOG, GF Café, several of the Epcot Holiday kiosks and others).
When I'm spending $300 to $600 total for offsite lodging for a 7 night stay (roughly the price of 1 night in a Disney deluxe), then multiple trips per year become more affordable. There's more money for eating out.
It doesn't hurt that Disney has offered pretty good deals on APs for DVC owners lately, so parking at the parks is free, dining is usually discounted and my cost per day for the parks for this Annual Pass will likely work out to less than $30 per day. Commando isn't typically my thing since I go on a regular basis (although if I'm bringing guests that want to hit the parks all day, I'll usually accommodate them - but it's more common to sleep in a bit, then hit a park and do the fastpasses and grab a bite to eat and head back the resort for a break for a few hours and then get back in the car for dinner and/or a little more time in the parks.)
I've enjoyed my DVC stays at Beach Club, Boardwalk, Bay Lake Tower and VGF - it's great to be able to walk to a park (or boat/monorail from VGF). Even at OKW and SSR, it's nice to leave the car parked and use the Disney transportation. But cash stays onsite have gotten pricey enough that I'd rather have more nights offsite even allowing for some of the limitations (FP+ for FOP won't be happening any time soon, sure. I rode FOP twice during 2017 - it was fun but not something that makes or breaks a vacation.)
Then after getting 4-5 weeks on this Annual Pass, I'll probably take a break from WDW next year and maybe hit some national parks, possibly Kauai or Vancouver for a change of pace. Then if the Star Wars stuff is as good as I expect, I'm sure Disney will suck me back in for more trips the year after that...