I worry about this as I've read about it so many times. I think though as there are 6 of us going, surely our food bill will be more than that.
Flortle - I guess it depends on where and how you eat on whether free DP works. If you like QS or you don't do many character meals or TS then it doesn't seem worth doing and the room discount is a better offer. I have already made a list of places we would like to eat (albeit as it's so far out this will change) and as it's our first trip there are a fair few character meals and more expensive dining places. I am guessing we'll do one TS a day with a QS 'snack' for lunch/breakfast (I know this is a) too much food for some and b) they don't want to miss park time so prefer to eat quickly). In our case though, I am hoping the free DP (if available) will be worth it.
I hadn't realised that only OKW & SSR offer room discounts as well as free dining. The issue being with these two places (from my limited understanding which may be incorrect), is that these aren't normally offered in the first wave of new releases as they are DVC resorts. As I'd like to be an early booker - it leaves me in a quandary about what to do - take a deluxe hotel with room discount and no DP or wait out and hope one of those places comes available with discount and free DP.