I think judging on whether on not the service has gone downhill depends on how frequently you vacation there. I've been quite a few times, but we don't go every year, so I can't judge like that.
However, as far as the prices are concerned, why wouldn't Disney continue to raise them? People keep going to the parks, so they CAN continue to raise them. It's not preventing anyone from vacationing there. When people stop going, then maybe they'll stop raising them, but not until then. I don't do the
DDP and I will say that some of the prices of food absolutely would prevent me from going. I'll use the lobster example, like others have. $58 for a Maine lobster at Narcoossee's?? That's absurd. Like others have posted, I can go down the street to my local market and get excellent, fresh lobsters for $3.99/lb. Also, as others have said, they are listed at market price at most restaurants, but you'd be hard pressed to ever find a 1 lb lobster for $58. I've never done the breakdown, but I wonder what that lobster would come to if you did all the math out. Would the DDP even be worth it? Another example is the $9.50 nachos and salsa at WWC. I can go to Chili's and get the same thing for $3.00, or better yet, go to my local Mexican restaurant and get them for free. But again...people continue to pay the prices for it, so why not keep them high?
At the end of the day, it's all business for Disney, and it seems to me that they have the consumers (present company included) right where they want them.