With all due respect, I think you're the first DVC owner I've ever heard of trying to spin it this way. Typically, the renter pays $X per point, and then if they want dining, they pay the DVC rate to the owner for that in addition to the rental rate. I also think it confuses the issue for this post, as it's so atypical that it's not going to be generally what the OP runs into when renting points.
OP, I've done three rental transactions, all with an owner I originally found on the Rent/Trade board here. It generally is less expensive to rent directly from an owner rather than using a broker like David's. I know that people say they like to go through David's for the "security" but a transaction through David's is no more secure than a transaction directly with an owner. David's just hooks you up with an owner willing to rent...ultimately, the transaction is still between you and the owner, and I'm not sure what kind of guarantee (if any) David's offers if an owner would abscond with a renter's cash without providing the promised reservation.
When renting, you can add the dining plan (if the owner is willing to do that). Dining must be set up at least 7 days before your trip and must be set up by DVC Member Services. What we've done in the past is send an additional check to the owner and then after it's received, he has called to set up dining. However, I've heard of people doing three way calls with the owner and member services to set up dining. It's all up to the owner.
Magical Express can also be added to your reservation, either by the owner calling Member Services or by you calling the ME to set it up yourself. The owner we've rented from has always called for us, but again, it's up to the owner.
The biggest difference between a cash reservation and renting points is that you pretty much have no flexibility when renting points...there really is no canceling (unless you have an exceptionally forgiving owner you're renting from). If you rent points, I'd highly recommend
travel insurance that covers timeshare rentals in case something unforeseen pops up.
Another difference between a DVC reservation and a cash reservation is that Mousekeeping is limited with DVC. They do a "trash and towel" service only on day 4 (???...I think that's right) and then a full cleaning on day 8 (again???I think that's right). If you're doing a standard week-long stay, you won't have a full cleaning unless you stay 8 nights or longer OR you pay extra for it. We've never had a problem with this and like not having someone messing around in our room every day.
Overall, I think that renting points is a great value and I'd totally do it again.