I'm not sure if I would call it Downhill either, but it is definitely not as "magical" as it was for us. But it's all a combination of service cutbacks, economy, CM attitudes, and downright rude and entitled guests.
We have been going yearly since 2002 and twice a year since 2005. This past August was the first time we went to Orlando without visiting Disney.

I know...I never would have thought we would, but since our last August trip was during Free Dining (and yes, I did knowing it was during that time, but we had no choice with our vacation dates). Now, as DVC members we do not participate in Free Dining so I really wished we could have gone another time. However, those were the dates.
I think that if Disney would remove the Free Dining, I would be a little more hopeful. I know many rely on it, but it makes our vacation a little less magical. Since we've been going, I find the worse experience overall is during Free Dining. We've gone many times during the Food and Wine Festival (before Free Dining was introduced) and although it was busy, I don't recall it to be as frustrating as when Free Dining is offered.
We had always raved about Disney. So this past year, one of our friends and their family had gone for the first time. I wasn't aware of it until they came back. They went during Free Dining and when I asked them how they enjoyed their vacation, they told me that it's not for them....it was too busy and they had some bad experience with guests and CMs. I suggested that they should avoid Free Dining at all cost next time they visit. I don't think they'll be going again. They mentioned that they were so excited before they went.
We decided that we would not go during the August free dining and just go elsewhere. This was also the first time we didn't renew our APs. Now, I'm upset as well about the Free Dining offer during the Spring break. This past March, it was busy but manageable, but I'm worried that it will soon become like the August Free Dining and we'll have to consider changing those vacations as well.
I know it's not realistic to blame one thing - Free Dining- for the decline of "magical" vacations for my family. But it seems to be the most prominent problem during our stays. And although the food is not awful. I do see the decline in quality and a few times we have left the property and eat elsewhere, which we thought we would never do.
We still go at least once a year, but now we're willing to split our vacations with some other park/venue.