we have the AP and usually book AP room discounts. Our experience has been that getting AP room discount & paying for the dining works out to about the same as
Free Dining. Remember, to get free dining, you pay full price for the room. Quite often when you compare the two types of discounts, you'll find the $$ saved works out to about the same because you're paying full price for one or more components of your trip.
This rule of thumb holds true for moderate and deluxe resorts, usually...but if your preference is value resorts then Free Dining package may work out to be the best deal for you since % off discount at the value resorts are not that big of an amount, especially during the lower-room-rate seasons when free dining is typically offered. Free Dining often works out better if you have 2-3 kids on the dining plan in your room
One disadvantage we've found to the AP discount is sometimes the AP offers don't come out until a month or two in advance of your trip, so if you need to plan way ahead it can be nerve-wracking waiting for the availability. Course you can always book the trip anyway, get your dining reservations early then when the AP offers come out, call in and change your reservations. You do need to be flexible on which resorts, too...we've found we get our first choice on hotels about 2 out of 3 times One real advantage to the AP discounts is you're not required to have a 3-night minimum stay like many of the other discount offers (including free dining) We like to go over to Disney for a one-night/two-day trip, or 2 night weekend trip...it's wonderful to try outother moderate hotels and Deluxe hotels at 35% discount for just one night...you can't do that with free dining discount!
Best bet is to "crunch" the numbers, and see which version works best for you.