I still don't understand how it is free. Unless you are staying at a resort where there are no room only discounts, but which is included in the
free dining offer. More like discounted dining. OR in your case, sharply discounted dining
I personally only stay at the DVC resorts, so maybe that's why I can never pay rack rate.
Simple, rack rate on a package is full price for room, tickets, and dining. On a free dining package then the dining portion of package is free

It really is that simple.
Your right, your not getting anything free when you go with discounted rooms or tickets when part of a package but I am getting
DDP free when part of the package as the full cost of the DDP is taken off of my package, not a percentage.
For my family we use to find the value in renting DVC, purchasing AP's, getting a TIW card but for us the value just isn't there since FD came out. With our kids older and in HS and college we can really only travel once per year now but we like to spend 12-14 nights per trip and choose to stay at a value or moderate and not deluxe to find the savings. As our kids move on with their lives and it is just DH and me we may not find the value in FD anymore and may look toward other options.
My trip @ mod resort, DDP, and tix @ rack rate= $8661.48
My trip @ mod resort, FD, and tix = $5023.08
My trip @ DVC renting points, DDP, tix= $9176.35
This is getting 2 studios since that is cheaper than getting a 1 bed
My trip @ DVC (as owner), DVC AP's, DDP = $ 8536.35
Took my mom off since I won't be paying her part, she was messing my figues up since I counted her and then didn't count her, sorry