Same here that city in that demo is unreal and looks pretty much of what you described as a next gen FFXI set in the future. After the first time I laid eyes on that trailer I was counting the days and years until the new FF MMO was coming out then finally the E3 announcement, My friends and I were so excited only to be let down hardcore in all directions.
I wish you are right with the FFXI-2 thing I really do.