I wonder if there is a way to game your system. For example instead of buying a 1/4 fraction, someone could set up two LLCs each owning two 1/8 shares. With the way you rotate the priority order from year to year, the person would get "first choice" two times within one cycle. Getting first choice two times for 1/8 each is superior to first choice one time for 1/4. For example the weeks around very popular vacation dates (Christmas) would get picked out twice each cycle by the same person.

That aside, I wonder if this model would open up some interesting rental opportunities: instead of occupying the property, co-owners could rent out their blocks of time, and get a return on their investment in the fully-managed property.

Unrelated: you say: «Ancana owners own a real asset (the property) versus a block of time» But I wouldn't emphasize this too much. After all, on the surface co-owners get the same utility as a time share: they have to reserve their "block of time".