To get
free dining you must pay rack rate for the room and everyone in the room must buy at least a one day base ticket. As an AP holder, I have gotten
free dining every year since it was first offered. To do so though, I've had to give up the room discount and buy a one day ticket I didn't really need. However, you can save that one day ticket and use it next year to apply to another Annual Pass. As long as you never put it in a turnstyle it will be good forever.
As far as whether or not free dining would be a better deal for you guys than your current room discount, you would just have to run the numbers. Usually if you are staying in a Deluxe resort, the room discount will be a better deal. If you are staying in a Value resort, then free dining is usually the better deal. At a moderate, you'd just have to run the numbers. For example, I am staying at CSR Sept 26th-Oct 4th and again Dec 12th-20th. For my trip next week I am traveling solo, so the AP room discount easily beat free dining. However, for my Dec trip there will be three adults in the room. For three adults in a moderate, free dining beat the AP discount. Just multiply the price of the
DDP ($39.99) times the number of nights you'll be there, then times the number of people in the room, then subtract the price of the one day ticket you really don't need (about $80.00). If the total is more than what you saved with the room discount, then free dining would be a better deal for you, if not, then stay with the AP room discount. Unfortunately there is no way to get both the AP room discount and
free dining. You must choose one or the other. As an AP holder you can buy the DDP though and still keep your room discount and not have to buy that one day ticket. That may be a good deal for you. That's what I'm doing for my trip next week.