I think that the Pop Century rumor will never pan out. If they do ever offer a lower cost option it would have to be a seperate program.
As to whether I think DVC is too big, I welcome growth as long as it is not all at WDW.
Disneyland, Hawaii, Disneyland Paris,etc. Will only offer us more options as members. In addition, DVC units sold outside of WDW will decrease demand for rooms at WDW, do to the fact that many of the members who buy at the new (offsite) resorts will do so because they like the location.
As an example I offer up the Grand Californian Villas. Most of these new members will be west coast members that plan on using these points primarly at The Disneyland Resort.
They are essentially expanding the portfolio of DVC resorts, without really impacting avaliablilty at WDW. This holds true wheather there are 50 units or 500. The same would be true for a Hawaii property.
In addition, you have many existing members that are waiting for some new options off WDW property. These members will use their points at off site resorts, creating avaliablity at their home resorts.
I support steady growth at WDW and expanded growth at other locations.
Luckily, this is the direction DVC seems to be going.