Alot of that magic is partial nostalgia. FFXI came out way earlier in peoples lives. However, alot of the glamour of older games like that came in it's difficulty.

But the problem is, MMO's hit the mainstream. Back when it was a niche for people who loved real fantasy worlds, and exploring things, slowly but surely working on their character, and building relationships. Now MMO's are just a central hub for instant gratification players to group up, force everyone to play their way, complain that a run took 15 minutes instead of 14:59, and shout how they have no time for this game yet they want everything. It's mind numbing.

TLDR; This game didn't lose its magic. In my opinion MMO gaming has lost its magic, FFXIV is no different. Although I heavily HEAVILY enjoy this game because of the free company i've made and the personalities of the people within it. They are what keep me going and enjoy this game tremendously.