I agree but acting like
free dining is a deal without realizing the 'rack rate' is a ripoff is bizarre
I think this is an overly broad generalization.
For deluxe resorts, I generally agree. Rack rates at those are insane (even during value season). So free dining generally isn't a good deal at those (as compared to a room discount) unless you're staying a a lower priced room category, have more than two "Disney adults" per room, and plan to eat a lot of table service meals (whether you're on free dining or not).
For mods and values, it's a different story. With the exception of peak season prices (when there usually aren't alternative discounts anyway), I honestly don't think rack rates at these resorts are that outrageous.
For example, we recently stayed at CSR with free dining during value season. Rack rate was something like $170 per night. I'm from New York, where hotels are generally pretty expensive, and CSR was far nicer than just about any place I've stayed in-state for $170 a night (this includes upstate).
Now, one could argue that a better comparision would be an off-site Orlando hotel, where, perhaps, there are comparably nice places to CSR for less than $170 per night during value season (or places nicer than CSR for $170 per night). But you also have to factor in the benefits of staying on-site that also provide real cost savings vis a vis staying off-site (e.g., Magical Express/not having to rent a car and pay to park, etc.).
Throw in free dining (which we upgraded to deluxe), and we felt like we got terrific bang for the buck. We had three Disney adults and one Disney child in the room. So free dining was about the same per night as rack rate on our room (basically equivalent of stying in the room for free in exchange for buying a dining plan - and we had a grand time eating in all those signature restaurants).
In short, in certain circumstances, I think free dining can represent a good deal for people.