The DDP seems to always work out better financially for us especially when it is just DW and me.
We are foodies (I am a former restaurant owner and executive chef) so the dining aspect is a major part of our vacations. For our 5-night BLT stay in February we chose the DDP. We did the Quick Service plan in July with the kids and decided we like the TS meals too much to pass them up.
We really enjoy the Deluxe Dining Plan and enjoy the signature restaurants more so than the 1 TS. We will usually eat breakfast or lunch at a 1 credit TS and then use 2 credits at a signature restaurant each day.
I did an analysis for our trip based on how we like to eat and tried to justify to myself that the Deluxe Plan was the way to go. I couldn't. The cost spread is too great now between the DDP and the Deluxe Plan.
I then analyzed whether paying out of pocket was more economical vs DDP. For us it was not. Not even close. Because of the way that we like to eat using DDP basically gives us our CS meals and snacks for free.
Next, I tried to get creative so that we could still enjoy the signature restaurants that we like and not have to pay out of pocket (for the most part) to do so. Here is how I worked it starting with 5 TS and 5 CS pp credits for our stay:
0 credits - Kona Cafe - breakfast, using left over $25 Disney gift card (free for taking DVC tour)
0 credits - House of Blues - lunch, using $25 Restaurant.com gift certificate
2 credits - Yachtsman Steak House
2 credits - Narcoosee's
1 credit - Ohana -dinner
5 credits - CS
snacks
We will probably have to pay a little out of pocket for KC and HOB.
I agree that dining at WDW has been "dumbed down" over the years. The quality of the food is not as good, the menu variety and inventiveness is not there and the service is lacking compare to the old days. I attribute this to the DDP.
DW and I began going to WDW in the mid 80s on the now defunct Grand Plan which today would be called the Premium Package. Back then if you wanted a dining plan it was your only option. The servers were professional and attentive. The food was not only inventive but you had more options on the menu. I miss those days!
Have a great time which ever way you choose to go!