Free dining is absolutely related to it. I've talked with the managers, and they absolutely hate the dining plans. They only get a portion from each person, and for the more expensive dishes, they barely break even. Some have had to go to lesser cuts, and some, like LeCellier, had to go to 2 credits.
It's not even free dining. Ever since the advent of the Disney Dining Plan, food quality (both TS and QS) and portions (TS) have declined while prices have increased at a not-proportional rate.
Remember when the Dining Plan included gratuities, plus an appetizer and dessert? And there were slow times at the parks? Ahh... the good ol' days...
My neighbor used free dining on his existing AKL reservation this morning. He had to pay for park hoppers and rack rate, but that was $820 additional compared with the $2200 he'd have paid for the dining plan, so he came out ahead.