I'd take the steak at California Grill or Yachtsman any day over Smith and Wollensky, that place is completely overrated.
Delmonicos or
The Capital Grill is the place to go for a good steak, outside of Peter Lugers. I've said it before, but being used to NYC prices, I'm fine with the price and quality of the food at that price for our 'go-to places' at Disney. My wife and I are usually more excited for the restaurants than the rides. That being said, we go to my parent's house out in Pennsylvania and are shocked how cheap some of the food is out there, so I guess it's all based on what you're used to paying at home.
The standard dining plan is pretty easy to come out ahead on with some simple planning and math. We always try to maximize character meals with the kids, since one buffet pretty much equals one day of the kid's dining plan, so you then essentially get their QS and snacks for free for that day. Then save the majority of the snack credits for use during Food & Wine, or whatever the current Epcot festival is for $5+ snacks. Especially now that you can get a $10-15 beer or mixed drink thrown into every QS and TS credit, it's great, usually end up $100-$150 ahead.
I'm sure there are some people that do not use it wisely, especially the QS plan, but in general it's not the automatic waste of money that alot of people make it out to be.