I agree with the OP, that FATES are crappy as they are, I also agree with other posters that FATES are an interesting, interactive, MMO feature.

I think the problem with FATES as they are is that it's just a spam fest to get your max contribution, and fast XP. They would be better if they required a high level of skill or strategy. Like: limit the number of player that can participate somehow, add lots of instant death mechanics, require a high level of coordination.

In Everquest Online Adventures for PS2, there was a open world boss that spawned called "avatar of love" or something like that. I don't know if the location or time was random or scheduled, but it sort of reminds me of the way FATES pop up now and then. Anyway, the mechanic that made her extremely difficult was that she healed to full if ANYONE used a physical attack on her during a certain phase... In other words, if players weren't coordinated and strategic they couldn't beat her.

IMO open world bosses are a distinctive MMO component that WoW completely failed to implement, AND an opportunity for FFXIV to really shine. FATES could be the vehicle, with a bit of tweaking.