I think there's a big misconception that pops up every time this topic comes around...that we as DVC members are dealing with the same entity that offers those promotional deals, and that that entity doesn't value our business and feels like we're coming anyway.
You purchased your DVC contract from a real estate developer - Disney Vacation Development. The only connection that they have with Disney Parks and the Disney travel company (which offers free dining,etc.), is that they belong to the same parent company. DVD exists to sell timeshares. That's their business. They don't care if you ever set foot in a theme park or eat in a restaurant on property.
The Disney travel company - the part of Disney that books cash resort stays and offers free dining - offers those promotional deals in order to get people to book cash reservations at their resorts.
The pool of villas that we have available to book - the 'member inventory' - is owned by us, the members. We do not give the Disney travel company any money, either when we initially buy in to DVC, or when we use our points. They have no reason to give us free dining, or a 4/3 deal, or any other kind of deal. They exist to book resort rooms that are not part of DVC. We don't do business with them. Even the computer systems are separate.
It's the difference between timeshare ownership and booking a cash reservation at a hotel. As for what's the better deal.....as others have said, price a free dining package at a DVC resort. Then figure what you're paying per night for the use of your villa. The answer is pretty clear.