£50 per meal sounds quite a lot doesn't it, especially if no alcohol. I suppose the question is whether you would plan to leave resort - I'm sure you could eat for a lot less than that outside resort, but if you ended up in the hotel restaurant every night anyway, then AI is probably cheaper.
£695 for all of you is great, how long is that for.
We go self catering because generally our spending money for meals, drinks, ice cream etc is about £1200 for 2 week hol in europe. However to go AI in most hotels is an extra £1500 so we're not saving anything by doing it