Per AllEars.net, "Hollywood & Vine and Mama Melrose's Ristorante Italiano both count as one Table Service meal for the Dining Plan, while the Brown Derby counts as a Signature experience, or two Table Service meals."
It was this way when we ate there in April 2008 too. Dinner, while good, wasn't as great as California Grill which is also 2 credits.
For me, if this is not a must do I wouldn't bother with Fantasmic with a 16 month old. Of course every kid is different, but neither of mine would have been able to deal with Fantasmic at that age. Too many startling loud moments for my scaredy cat baby girl and my tubes-in-his-ears, doesn't-like-loud baby boy. As much as I miss them being babies sometimes, they are now getting to ages where we can share in the fun of stuff. As mom, you know your kids better than ANYONE.
The only benefit of the dinner package for me is not the food, but bypassing such a long wait in line.