It completely flip-flops the effort-to-target-audience ratio. Given that resources are finite and raid development, from all we've seen, is particularly costly, it results in the developers putting a significant amount of time and effort into developing end-game content for a small part of the end-game population and a small amount of time and effort into developing end-game content for a significant part of the end-game population.
This is why the Diadem was such a letdown...

We already know these devs are short on resources, and Diadem was an opportunity to install the infrastructure for a form of endgame that could have been expanded over the rest of the game's life. I feel like that kind of innovation is critical for the game's long-term health. Otherwise, XIV will always be gimped by an endgame that caters to such a small percentage of players.