It is correct.
All DVC hotels must meet contractual obligations, which include balconies. In order to change this, they would have to re-write every contract and get every "owner" to agree to sign again. This isn't something they can change willy nilly as Disney is technically selling property, so the owners have rights. As far as Florida Timeshare Law is concerned, it would be next to impossible for Disney to change this part of the contract.
Their best bet would be that they pay off a politician who writes a law into effect for Florida (that would of course have to pass) that says every new timeshare built must be enclosed, without balcony.