Dulwich is in Southwark. WH Smith has just been refitted when the post office moved in. The supermarket is quite big enough (and Bell Green is not far away and Waitrose is closer). East Dulwich manages without a cinema.
I don't think that ED has regenerated by action from Southwark council as much as market forces. I am confident that market forces will help Forest Hill, even in the recession, but the council could take action to make some improvements (better storage for bins, grants for shop fronts, re-open the swimming pool, work with Network Rail to rebuild the station, make the town centre car park free for longer).