I've read many of the books, and while I liked the original trilogy it simply doesn't match up to other fantasy series. (Namely Chris Claremont's Shadow War trilogy, Stephen King's Dark Tower series, Lord of the Rings, or even to RA Salvatore's eariler Dark Elf books.) I completely lost interest in DL after Dragons of Summer Flame. I just couldn't stomach ANOTHER world-changing event in a world that's had so many of them that it should have been totally destroyed long ago!
As forthe game products, the new 3E products are much better than what came before. However, the DLCS doesn't have a clean enough feel when compared to other campaign settings. The DLCS and the Bestiary of Krynn are both pretty books, but the formatting is less than desirable (leading to less word density per page than other CS's of the same price), and the handle on the D20 is tenuous in spots, but not nearly as bad as other D20 products. All in all, I'm happy with them for what I wanted out of them (new races and monsters primarily), but I wasn't moved to attempt running a DL game with those books. Due to my distaste with how the setting was progressing when I quit reading the books, I would end up changing so much of the setting that it wouldn't really be DL anymore.
Overall, the new stuff is alright, but there are better settings out there, IMO. If you really want DL, then it will easily fit the bill. I'm just not than big of a fan anymore.
Kane