For US amateurs, you actually do have to be a member to participate in DXCC independently.
"
ARRL membership is
required for DXCC applicants in the US, its possessions, and Puerto Rico. "
That's
DXCC rule I. 1.
Foreign
amateurs do not need to be ARRL members.
It
doesn't mean that you lose your awards once your membership lapses but from what I understand your DXCC is "frozen" and to do any updates you'll need to have a valid ARRL membership.
I
am not comfortable with the idea of disincentivizing membership. There are members who become members *only* because they can participate in DXCC. If we remove that requirement I'm sure that some will opt to save that $49 per year.
As
for LoTW, anyone can upload logs there, member or not. The idea is to not deny someone a confirmation because the person at the opposite end of the QSO is not a member.
Ria
N2RJ