That's a great point because no matter what resort category you select with Free Dinng you are paying the rack rate, so that is catch with Free Dining. So I would say if someone wanted Free Dining and to stay at one of the Deluxe Resorts, chances are that's not a good deal since you pay the rack rate over there.
I keep reading that the CMs on the phone at the reservation line cannot make these changes - that you must ask them for Guest Services. Apparently they can make the change and keep your free dining package!