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Try a reboot after disabling DDE to help the change sink in??
No effect.
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What does it do for file associations that's so bad?
Well, as was stated in this thread, sometimes a given application will have a broken DDE implementation and will sometimes refuse to open the document via that method.
Another thing that often happens with DDE is that it forces the application to open the document in the existing running instance of the application, instead of launching a new copy of the application to host the second document. While this is the desired effect in most cases, I have a few specific situations where I want it to do exactly the opposite thing.
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