Renting DVC points is a great way to stay at a deluxe resort for a fraction of the cost but you need to be aware that there may be strict no-cancel policies. You usually have to pay the whole (or at least half) of the price up front, when the reservation is made. Depending where you want to stay, and the time of year that you want to stay there, you will probably need to find an owner who owns and has the points available for that resort, so you will have the 11 month advantage. There are no discounts/free dining/tickets included packages with DVC so it you are looking for free dining, that is not going to be the option for you.
To answer your second question, most of the deluxe resorts are really not themed around children like the value resorts like Pop, All Stars, etc. so I would choose based on where you would like to be located. If you are likely to spend most of your time at Magic Kingdom, I would opt for Polynesian (fabulous view of Magic Kingdom and the lake from a lake view studio) or Villas at Wilderness Lodge. If you favour Epcot and Hollywood Studios then I would go for Beach Club Villas or Boardwalk Villas. For resort alone, my favourite would be Villas at Wilderness Lodge. Of course, if your little one likes Animals, there is always Kidani Village.
It will be harder to get a studio at Beach Club Villas/Boardwalk Villas in October, due to the high demand with the Food & Wine Festival.
Meanwhile, I am going to pop this thread over to the DVC board where you might get more answers from DVC experts.