The problem with having an actual piece of loot drop is that the lucky few who get that on a weekly basis get a significant boost over everyone else right from the start. Which inherently wouldn't be bad but then the entitlement squad comes out to whine about how unfair it is that the DRG is in full Gordian gear while they only have 3 tokens. In this fashion, everyone can progress at about the same pace.
The problem with EVERYONE getting a token at the end of a run is that it doesn't offer any incentive to go back and run it again for the week. Everyone clears the runs on Tuesday (especially if they're this easy) or Wednesday and then the stragglers who couldn't play on Tuesday or Wednesday are screwed.
What?
I played XI for about 10 years too, right from the PS2 release up through the voidwatch stuff... and I fear you're looking at the past with nostalgia glasses on. I loved me some FFXI but they definitely did not do stuff right 90% of the time. Class balance wasn't even a thing. Certain jobs always got priority. The level of corruption that some LSes went through was obscene. HNMs was highly exclusionary and promoted botting. Hell NMs in general promoted botting. Hunting certain NMs was an absolute nightmare. For years relics were absolutely unobtainable for the vast majority of people, yeah it gave to their prestige but the people who had relics built them on the coattails on 40 other suckers. Let's not forget AV who was flat unkillable without glitching it. The list really goes on and on... Hell using the current topic as the best example, you would really rather have a loot system where you have to farm spawn items for 4-6 hours several times a week, have one night where you HAVE to be on cause your LS is spawning everything that night (have a vacation planned that day? Cancel it, you better get on or you just spent 30 hours for someone else to gear up), successfully win the fight less you lose all your pop items, hope to god your item drops (some were really rare), pray that you had enough "points" to outbid everyone in your LS for said item, and then hope that no one ninja lotted or hit the wrong button vs. lot against 8 other people for a guaranteed token... assuming you lose it 10 times, you have to run a 10 minute instance for a total of less than 2 hours per token.
XI did some things right and I enjoyed my time there but it was riddled with plenty more flaws than FFXIV and XIV is infinitely more fair to all players.