When I was there (August 2006) the only snacks were packaged shortbread cookies and crisps. The "no JW Blue" is a bit of an understatement, it was JW Red that was on offer (costs 10% of the JW Blue price, so BA is saving a bit of money there). The lounge dragon was actually an LH employee (maybe it rotates, or varies by time of day) and might have accounted for the strange reception. The internet service provided by BA in their lounge is priced at USD 15 per hour, and is not free. Maybe BA decided to price it so high to better serve their customers who don't know about the other services at DFW. There were no UK papers or magazines of any kind, but this was after the 8/10 events which caused considerable chaos with LHR/LGW flights and might account for the lack of papers.
I was surprised that BA operated such a lounge -- they don't usually. It does sound that standards were higher in the past, and have slipped. The BA attendant was very friendly, and let slip that BA has been losing a lot of J/F pax to LH out of DFW.
The AC in DFW D did have more/better free food out (don't get excited, it was the usual celery sticks, pretzels and apples). I didn't find a single aspect of the BA lounge that was better than the AC, which is a shame for a brand new facility. I guess BA thinks the lounge at DFW is not an important aspect of their service.