I hate to say it, but "
Free Dining 2006" changed my family's entire approach to
Disney Vacations ... for the better! It actually helped us to realize how much more there was to Disney beyond the parks!
Because of FD, we tried our first deluxe resort stay - the money we "saved" on food, we "spent" on accommodations. We also stayed in 3 rooms instead of 2 (there were 8 of us - all "Disney adults" - that had travelled to WDW before and crammed into 2 rooms at a Value.) It was the most relaxed vacation we've had. (As you can see from my siggie, we've never looked back! Yes, Disney that one FD trip has increased your revenue by thousands of dollars in the past three years from my family alone!)
Also, because of Free Dining we experienced sit-down restaurants at Disney for the first time. We were strictly counter-service types before that. We were missing out on some interesting experiences and tasty food.
We've found that the dining plan is a good value for us (we only had FD that one time but have gotten the basic dining plan every trip since). We've also found that our trips are actually much more relaxing because we have to stop hitting the parks commando style in order to sit down to eat.
We also like that the majority of our trip is totally paid off before we set foot on Disney property. There's something about "using credits" that's well, liberating. Since we've paid for our meals, and can't get a refund, it's easier to take the plunge and try something new. The DP has given us the opportunity to experience the dinner shows (SoA, HDD, Illuminations GG) that we never would have "spent the money on" otherwise.
Now, I agree that the booking at 180 days (90 now) is kinda crazy ... but in truth it has become part of the fun of planning and waiting for a Disney vacation. It's nice when you can get what you want, but it's also kinda fun when you can't - because they you are more likely to try something new.
I can't comment on what the DP has done to food quality at the World, but I can say that we have enjoyed almost all of the TS meals we've experienced. We have developed favourites, but we also try to fit a few new places in each time - at the very least it's a chance to explore the resorts or other areas of Disney we wouldn't necessarily stop by otherwise.