The youkai watch stuff is pure garbage; it's ugly, it's immersion-breaking and it sullies the game's (mostly) cohesive aesthetic.
That might seem a frivolous complaint, when we're talking about an MMO already filled with particle effect weapons/armor and enemy models ripped wholesale from other Final Fantasy titles, but this is in blatant disregard for FFXIV's extant set of design principles and is a general hallmark for a self-destructive slippery-slope that has in the past ruined better games.
Case and point:
http://i.imgur.com/EZ6Ka3g.jpg