I do agree with you that updating the FFXI graphics would run the risk of the graphics losing their doll-like charm. There is a lot of beauty in simplicity, and in my opinion FFXI hit the perfect sweet-spot with graphics, they are functional and they have an old-school charm. FFXI is populated by toy-soldiers and dolls, very much like the paper-doll 2D roleplaying games on PC, that came prior to FFXI.
The FFXI graphics are a side-salad to the main course, which is the playability of the game, the engine itself, the myriad of weaponskills and spells available, the long list of jobs with their unique play-strategies. FFXI has a masterpiece game engine, it is a sublime work of art. The actual graphics are nice, they look fine to me, and infact I do prefer the basic dolls and toy-soldiers appearance, to the more modern games where everything is realistic and shiny. "If I wanted realism, I'd go outside!"
In terms of flagships, yes FF14 is the flagship now, if we use the most common meaning of flagship ; the current major product. Some people do use flagship to describe the most successful product too, in which case FFXI is SE's flagship product, with over a decade of sales and subs, totalling far in excess of FF14.
Staying with the ships metaphor though, FFXI is an ornate wooden frigate, beautifully carved, with billowing sails, it sails gracefully and elegantly, and plays fine on a basic budget PC. FF14 is more of a gold-plated tugboat, it keeps getting more gold attached to it, but underneath all the gold it is still a tugboat, a basic vessel designed with one primary purpose, and without the grace or elegance of a frigate in full sail. (This is only my opinion!)
And this is why I don't really see the whole "they want us to go to 14" thing. SE know that FFXI and FF14 are two completely different games. They are both very good games in their own ways, and appeal to different tastes. I'm sure that SE realise this, and never intended for people who like the complexity and perplexity of FFXI, to suddenly like the ABCDEFG follow-the-arrows gaming in FF14.
I think it is good that people enjoy FF14, and I hope it is a success. But it was never intended to replace FFXI, as they are two entirely different types of game. SE must have known from the start that gamer tastes differ, and some people would love FF14 and others would prefer to stay in FFXI. And so long as people keep playing and subbing FFXI, it should be around for quite some time.
:)
