The first time I went to WDW in 1983, I stayed off-site. In fact, I stayed in the Don CeSar Hotel in St. Pete, a pink monstrosity of a beach resort hotel, but with great service and facilities -- at a top price. After that, my family has visited many times, staying on- and off-site, at low cost and at top price. Hyatt Regency Grand Cypress, Contemporary, Poly, Swolphin, Gaylord Palms, Saratoga Springs, Ft. Wilderness cabins, All-Star Sports, Coronado, Quality Inns Suites, Embassy Suites LBV, Hilton Grand Vacations, and others. In fact, for several years, we used to fly into MCO without reservations, counting on getting last-minute deals (and getting them every time).
Our reasons for staying on and off did include cost, but it wasn't the only factor. It was a combination of seeing, doing and trying new things, and planning a complete vacation. We know what we want and will pay to get it, but we also like a good price. We just planned our first visit since 2018, and we did consider on-site, but ended up staying off-site. Several reasons for that, including that we are getting a spacious one-bedroom suite with full kitchen at a reputable place for literally $800/night less than a place at the Four Seasons (which we had been considering), hundreds less than a comparable DVC, and, in fact, for less than any comparable space on-property, including AoA family suite.
But one of the biggest reasons for staying off-site this trip is that there was no reason to stay on-site right now. We would pay to get EMH, preferred reservations, free parking (we always rent cars and drive ourselves), room package delivery and so on. But there's nothing that's drawing us in now or in the near future.
We are the people this additional perk is aimed at, and we're not biting. The Sears analogy by John park hopper is actually a good one. But he didn't take the point far enough: Once the magic is gone, even a bit, it will take more than just restoring what was there before to draw people back.