There's no problem with fate grinding, it's almost literally the only way to level a second class/job to max. Hunts won't do it, you could run dungeons for their ABYSMAL exp, or you could grind monsters over and over.

Anyway, what's the difference between a FATE party and an FFXI grinding party? At least FATE party requires movement and a lot more effort.

Anyway, FFXIV has a lot of issues, but none of them are really gamebreaking at the moment. Just lots of quality of life buffs (crafting from retainer, talking to NPC while mounted, better inventory sorting to name a couple)