I had wondered if DJ was even still around and operating, interesting to note it is hanging in there.
DW seems to have an uphill battle selling people on their site. I got a free account over there, that I used out of curiosity (mostly just to nose around, I don't actually update/have any entries over there). For some reason, I can't seem to warm up to that site. Also, the fact that the site is already stuck in drama (http://dw-news.dreamwidth.org/16590.html and http://dw-news.dreamwidth.org/17231.html?#cutid1 seem to sum it up) is far too reminiscent of LJ for a lot of people.
I guess, for me, I just don't see why anyone, happy in their current journal (be it at IJ, DJ, LJ or wherever) would switch to DW. I don't see what's better about it.