There are a couple of ways this can still harm the game, depending on one's view.
The first is that the presence of a cash shop, by definition, changes the nature of the community which chooses to play the game. As I've said before, I played FFXI over WoW largely because I preferred the community. The continuing effort by the development team to emulate aspects of WoW is therefore, to me, harming the game.
The second is theoretical, and obviously there is no way to prove it, which I freely admit. However, given that there's a cash shop alternative, I can't help but wonder whether this will continue to embolden SE to release vanity items with the ridiculously low drop rates that a lot of them currently have. For instance, the 1% or so drop rate on the Primal horses is absurd. It should never have been this low - ever. Were there no cash shop, these artificially low drop rates would become a source of increasingly vocal complaints by the community, eventually leading to change. With a cash shop, on the other hand, those complaints will largely vanish - and SE will have effectively created its own market, while still technically maintaining the ability of players to get the item via in-game content. To me, this type of decision would also harm the game, though again, it's hard to say whether these two decisions have been intentionally correlated on the development side.
So, I'm not sure it's a fair "compromise" really.
To broaden my response slightly, the main issue here is that compromise is somewhat impossible. I think the core complaint of people opposed to the cash shop is that they don't want XIV to appeal to larger populations; they want it to be a more selective title, like FFXI was. The existence of a cash shop, no matter the form, no matter how restricted, is still a problem for these individuals - not because it directly affects them, but because it indirectly alters the composition of the community in ways they don't like.
Edit / Addition: Frankly, I'd have actually rather seen them attach $5/mo more to the subscription price. As alluded to above, I explicitly do not want FFXIV catering to the masses to the extent that it is. A higher price range helps to make it more selective, and a corresponding lack of a cash shop (with preferably a wholesale shift away from the amount of vanity gear being released) would also help to improve the community, in my eyes. One of the best aspects of FFXI's development, in my eyes, is that the game was created under a consistent image, rather than catering to the most people possible. It's what gave it the unique feel and complex world that many of us treasure to this day. FFXIV has thus far tossed that philosophy out, which might make for more subscribers, but results in a weaker game, in my opinion.

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