Agreed. S-E has always been known not just for gameplay but for their graphical prowess. Even in the SNES days, FF6 looked pretty damn good. It's really only in the last ten years that they've fallen from grace.
I think you're on to something. A lot of other companies also do it
faster. S-E lately has been plagued by schedule slip and development bloat.
Let's look for a second at the biggest disappointment of this generation: Duke Nukem Forever. 15 years of development and generally accepted as a terrible, terrible game.
FFXIII was in development for 5 years. I'm not going to express an opinion on it but let's just say that it's not exactly popular.
FFXIV was also in development for 5 years, but it doesn't look like a game with 5 years worth of development in it.
There are theories about why this is. The bottom line though is that S-E doesn't know how time management works.
That's not exactly fatal for a game developer. I mean, Valve put the Valve in "Valve Time" for good reason, but then again they're a privately-owned company with a money-making machine: they can afford to waste time.
Runic put everyone to shame a few years ago when they pulled an all-nighter and made Torchlight. Seriously, tiny company + red bull + a few months = money. They only made that game so they could get some cash in their pockets to fund the game they really want to make.
S-E is huge. I read somewhere that they have like 300 people working on FFXIV. So what the hell are they doing? S-E is simply horribly mismanaged.
It's not that S-E has made a conscious choice to make their games look good but play like hell. Their games don't look
that good (exhibit A: clipping through your hat). It's not that they want FFXIV to suck. It's that they can't help it under current leadership.