I don't think the dining plan is the biggest problem of this.... its the whole menu in general. My kids are young and there is no way that they could eat an entire adult meal. They normally share a kids meal! However, many "normal" (ie. non disney) restaurants offer bigger variety. The point of this is that kids can eat more than chicken nuggets and macaroni and cheese. Besides the fact that they are not healthy for kids it is also limiting their parents. My kids don't eat this stuff at home. I don't let it in my house. I work hard all year to avoid it. It's vacation and I can live with it if they eat it then... but to a degree. It would be nice to see a salad or something a little more adventurous. They don't need to have crab legs (although my kids would love it).... but if you are charging $17 for some Noodles at Kona what about a smaller portion of those noodles as a kids portion. I think the thinking here is that this is vacation and the reason that we as adults like certain restaurants is for some of their "signature" meals. (Not signature restaurants) So if you love pineapple pancakes at Kona why not a small portion for kids? I don't think the whole menu has to be crazy but an option or 2 would be nice. A couple restaurants do do a good job so I don't think you can say it's the price that is preventing it. I think it is Disney not giving kids enough credit.
We eat out quite often and our kids find the same choices at home that they do at Disney...burgers, hot dogs, grilled cheese, mac & cheese, etc. That's why our kids tend to split an adult entree when we go out. So I don't think that Disney is that far off base with their children's menus.
I totally agree!
If they already have that item on the menu why can't we get a smaller portion? We have started to do more of the buffets because my dd's are sick of applesauce, grapes and chicken nuggets by the end of our trip. I plan a lot of meals based on the childs menu and those menus are sad

They really need to expand the sides at the CS locations for children as well.
As far as substitutes at TS we have been told no many times. Our dd's like the yogurt and rice but not the fish and we have been told no substitutions.
I'm sure they could offer smaller portions of adult foods but I'm also sure that the price of a child's DDP would probably double. That is not going to make anyone happy either.
I found plenty of other options for my kids last year but I did spend countless hours going over menu after menu for every restaurant on property in order to find restaurants that offered other things. We also opted for the DxDP to ensure that we could do TS meals for every meal because we knew that CS meals were not going to please anyone in our family.
Some of the places my kids got non kid type foods were...
All the buffets (Biergarten, Boma, Cape May, CP, TH, CM, 1900 PF) Flying Fish, LTT, The Wave, Narcoossee's, GFC, Citricos, Ohana, Cali Grill, Kona, Y&Y, 50's PT, Coral Reef, LeCellier, Rose & Crown, Tutto Italia, Akershus and Tappen Edo.
Since our trip, I've also added La Hacienda, Via Napoli, Wolf Gang Puck's Yachtsman, Nine Dragons, San Angel, Tony's, Jiko, WCC and Artist's Point to our list.