To be fair, the 35% off a future stay was never actually formally "announced"--it was just something people got via TA/CM inside info. Another reminder that even though there are lots of rumors floating around, we have to wait for the official announcement to know anything for sure. I expect that they felt (or got a lot of angry feedback) that (1) it was not okay to require people who had budgeted based on a
free dining discount they had been promised to have to pay rack rate for their upcoming stays and not be able to make any modifications to their reservations; and (2) it wouldn't be fair to give free dining guests whose reservations have NOT been cancelled by disney a future discount, but not give a future discount to anyone whose vacation HAS been cancelled by Disney.
I don't think 35% is fair--it gives a windfall to people whose dining plan value is less (e.g., party of two staying at a deluxe hotel) and shortchanges people like us whose dining plan value is far more (i.e., family of 5 at a moderate). I think they should have given a credit in the amount of the dining plan per-day cost. But I do think it does make the vacation more affordable than rack rate plus full dining cost, and puts us closer in the position of what we would have gotten (i.e., a room only discount) if we hadn't been offered free dining in the first place.