You're right, Derek, DEXA measures all fat in the body (along with muscle and bone), not just subcutaneous fat. If body calipers don't at least make an attempt to roll internal fat estimates into their numbers, that would explain at least some of the variation in the results between the two.
Here's a quick explanation from the site of the place i went to:
I don't think DEXA sucks at all, so, I'm not sure I get that comment. It is confusing, though, since body fat percentage seems to be a measure people who are very precise about these things treat as authoritative and quantitative, but, there's so much variation -- between the inaccuracies of each method and the varying results one person can get from each -- it seems like a rather poor measure lacking a true standard (although much better than BMI). Again, people who are otherwise very precise about how many grams of protein to eat, etc. seem to ignore the body fat measurement method used to arrive at the conclusions they've drawn.
I do take photos, but, again, I'm trying to plan how much fat I need to lose and how long I'll need to be on an extremely reduced calorie diet. My wife says I've clearly made some progress, but, then again, she would... As for my own judgment, if I'd been honest with myself all along, I never would have let things go this far.