Since you must have a bundled ticket purchase to be eligible for this deal, I don't think staying on DVC points sounds applicable for the dining card offer. Now, if you were paying cash to Disney for a villa resort, then you're not using points- you're using cash and that might open the door to a bundle deal. If you're paying cash to a member for point rental, you are ultimately using points and not paying cash directly to Disney. The member you're renting from is in the same boat as if they were using the reservation themselves, in that a point based stay doesn't bundle ticket packages.
If anyone hears otherwise from DVC member services, please chime in!