I agree that using HGVC points in RCI is a good choice but there is a higher reservation fee. Since we are Elite we don't pay any HGVC reservation fee for a 7 day reservation and a $39 reservation fee for other reservation lengths. RCI has higher reservation fees for all reservations.
If you are Elite I'm guessing you paid developer prices. Even though you don't have to pay reservation fees for a 7 day reservation and you get a $10 discount for all other club reservations the reality is you more than covered all of those costs up front (and then some) by buying from the developer than if you had purchased resale.
Excluding home weeks--I could spend 4800 points and $49 to stay in a 1bdrm. Or I could spend 4800 and $189 to stay in a 2bdrm unit via RCI. The difference amounts to $20 extra dollars a night. When taking friends. and family to Hawaii that's a really good deal.
If you normally book a 2bdrn unit at 7000 pts than you're going to pocket 2200 points for that same unit via RCI. Several times the Bay Club put me in a 2bdrm villa (8400 pts) when I had an RCI reservation for a regular 2bdrm (4800 pts). They won't upgrade me to a villa if I have a club reservation.
My point is RCI is a really good way to use points, even with the higher reservation fee. Additionally (and the most obvious) you can exchange into all those other resorts outside the HGVC family.