The problems with the instance fights are layered so unless all of them are tackled nothing will change. They've all been mentioned already but I thought I'd just summarize and add some of my own.
1) Difficult setting is the actual normal since gear hardly ever drops on normal setting and people want a reasonable number of chapters per fight.
2) The number of instances is way below what it should be.
3) Grinding merits before every single fight. While it's cute the first time, it can't go on forever like it does currently. The KIs should have been a 1-time purchase that is non-consumable. No one wants to gamble with 20 merit points, so you'll never see a PuG experiment with new job setups for these fights.
4) AoE, one-shotting, hate resets, and more AoE. Job balance is innately tied to horrible fight design. BRD and WHM are guaranteed slots, which means 20 jobs fight for 4 spaces, while constant AoE means that RNG or high HP DD (MNK) are disproportionately preferred.
5) The location of the fights is a huge barrier to bringing newer players or those who have not done them before. The most memorable thing about The Celestial Nexus II is probably how it takes every party 1.5 hours to gather because of a certain yellow door. Monarch Linn is also annoying, though it doesn't take as long. Let Domenic in Lower Jeuno teleport us directly to the new fights. I assure you the game will not break.

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