Geez, I am not sure why this comes up so much???
Not all discounts are what they seem correct. But because it doesn't benefit you doesn't mean it doesn't benefit others.
Here is our situation:
Free Dining is ALWAYS a better discount for us than any other discount WDW has offered.
We stay at POP, which usually a room discount is only 20%. So at roughly $100 per night (we are not going exact) a 7day/6night stay at the hotel is $600.
Now take 20% off that = $120.
That $120 I save (woohooo) will not cover 1 day of food at WDW for us. Yes staying on property, eating on property, being slaves to the system. this is our vacation and we do not change how we do it.
Free dining or not, we don't go off property to eat.
So if I pay rack rate at POP $150 (depending on the season, I chose the highest rate).
My 20% discount is $180, that will pay for 1 full day of dining and maybe lunch the next day. But it WILL NOT cover our food bill for the trip.
Now free dining, I pay rack rate yes but I still come out ahead because to buy the dining plan would be roughly $552 for the 2 of us. (for us paying OOP would be stupid because the DDP is how we eat, it is a perfect fit)
You are right in saying the dining plan isn't really free, as you pay the difference from 20% discount rate to full rack rate, but I still end up paying less for the overall vacation in the end. (that is room, tickets, and food)
Now if I were to stay deluxe the % savings is a bit more....for us still not enough to come out cheaper to go that way.
So with free dining it helps us get to vacation quicker, saves us money and feeds us how we love on vacation.
If the discount is not for you or doesn't save you $$$, look for one that does. But please don't say it doesn't save some of us $$$!!!!