I don't think it has to do with latency entirely. I think it has to do with the netcode and how FFXIV updates your position.

This is speculation, but FFXIV is one of those games which is easy to develop a teleport hack for, because the way the game updates your position. You can see this if you're in a group with someone and following them on a Chocobo. The other person in your party will jerk around, accelerating and decelerating. Or if you are in a party and someone else is moving around in a smooth circle. To you it will appear very jagged and jerky movements and pauses. This happens regardless of your ping.

Ping issues probably make it worse, for sure, but I have a feeling the bigger issue is the netcode which could be improved.

I've heard some people have luck with instant cast spells, i.e. as soon as they are out of the AOE cast an instant spell like Renew, and that seems to improve the likelihood of avoiding the AOE.