Just a reminder that we do have a park effect to deal with. Over the course of the season, GABP boosts the Reds overall RS and RA totals by ~5%.
Yes, we're still worse pitching wise than hitting. However, a staff full of league average pitchers would still produce worse than league average results. Our "league average" offense is actually below average and worst in the league pitching is more "among the worst in the league". Both are problems.
As for the bunting logic, I'll stick to a simple OPS comparison. A 70% success rate would leave Dunn with a .700 OPS. I'll stick to the .900 OPS version with the possible exception of the bases empty and an increased likelihood of success due to positioning. Any other time, I want him swinging.