I understand both sides of this argument. The free dining plan that has been offered was one major reason that I cancelled on my initial contract for DVC in 2005. I figured I could come to Disney on the free dining and not do the outlay of buy-in and MFs. Well, in August 2006, we got stuck (2 adults, a 2 year old, a 4 and 5 year old) in an All-Star room with one TV, two double beds, a pack-n-play and one bathroom (no kitchen) for an entire day courtesy of a tropical storm. Yeah, we got free dining, but part of that was the risk of getting such weather.
So, after that trip, my DH and I promised never to go through that again. Even if we were in WDW at the time, we could have been in our 2 bedroom villa with mutliple rooms, TVs, etc. By the way, the deal I could have gotten in 2005 was way better than what was offered when I bought from Disney in 2006.
The free dining plans are not a sure thing. Maybe for the interim with this economy, but most DVCers do not want to be at WDW during hurricane season anyway.
DVC members get awesome rooms (have you spent such a day cramped in an All Star?). A king bed is such a treat for my oversized DH and me.

We get Annual Passes at a discount and Members Perks.
If that is not enough for some, then maybe DVC is not for them. They can take their chances on the next promo and PIN codes to come down the line.
The room rates still go up, and the dining plan has changed significantly over these past few years. Is the possibility of a free dining plan promo enough to say no to DVC? Not for this family.