The luggage capacity of both power cars plus the TGS is probably equivalent to the luggage space of the DVT- the DVT is also usually used for additional catering supplies.
At Christmas, especially with services to and from Scotland, the sheer amount of luggage results in them running a check in service. There simply isn't space in the carriages for everyone to take what the NRCoC say you're allowed to take as luggage- and lets be honest, a lot of people are taking larger bags. They also continue to take bicycle bookings, so that space has to be left clear.
I think they do luggage check in on some other bank holidays, possibly at Edinburgh Festival time?
At other times, it is common for the bike spaces to be well used.
Chiltern and Arriva are running shorter trains on routes that don't have this huge seasonal peak.
(I should add that I'm one of the horde of Scots and north easterners living in southern England that typically heads north at Christmas, I've got plenty of experience of this!)