I've actually used packages my last few visits there because they come out slightly ahead. However, it depends where you'd like to stay. What is your budget like?
I don't think many discounts on passes are offered, but if you have AAA, you should check with your local office. Also, check the website. I'm not sure about DL, but I know at WDW they offer a discount for online purchases.
Discounts at the on-site hotels are harder to come by than they are at WDW, but Expedia and Travelocity have been known to offer pretty decent discounts, especially at Paradise Pier. But even there you'd still be looking at at least $120 per night.
There are lots of good hotels just across the street at prices much less than $100 per night. Check out the DL Board for more info on these hotels, but Howard Johnson's is one of my favorites, though it's slightly farther away, and I've heard good things about Carousel Inn and Desert Inn and Suites.
Also, unless you have your heart set on staying in a certain hotel or in a certain area, consider using Priceline. Last year I got a Hyatt Regency for only $44! (The only catch was parking was $12, but still less than I would've paid even at HoJo.) It was a couple miles away from DL, but in a nice area and convenient to restaurants, and had a good shuttle.
If you do decide on a package, I'd skip the dining plan. It's more like coupons or gift certificates, and if you dont' use them properly, you could lose out on some money. However, I've always felt that there are quite a few reasonably priced options there, and it's easy to walk across the street and find other places to eat as well.