First of all, a lot of people get confused by the term "deluxe." That is a Disney classification, a way of segmenting the resorts within Disney. If someone sees the term deluxe and assumes they'll be getting a Ritz-level resort, yes, they'll be disappointed.
I consider Disney deluxe resorts to be on par with upper-mid-level hotel chains like Hyatt and W and (better) Hiltons. We typically stay club level and pay in the neighborhood of $250-300/night (with discounts). At that price, we greatly prefer the Disney resorts. Their service level is exceptional, the resort theming amazing, the convenience & amenities ideal. We have stayed at several similarly priced Orlando hotels and found them lacking compared to Disney.
HOWEVER. Were we not able to get a discount or if the discounts continue to go down (as rack rates go up), things would be different. If we were going to have to spend $500/night to stay at Disney, then, yes, I'd rather stay at the Ritz.