Are they the direct translations used by SE, or the direct translations provided by Google or some anonymous player who claims to speak Japanese? A decent direct translation retains the meaning and mood of the original dialog without pandering to the localization niceties of recreating idioms and other colorful expressions in the target culture and language. I don't find translations to be dry or lifeless, just occasionally there will be a reference or cultural trope that I don't quite get.
The English localization team does have input into the lore, but you are correct that the Japanese version is the primary version. If I remember correctly (and it's been a while since I dug up all of the information on this), the Japanese script is translated into English preserving the original intent and mood of the dialogue, along with all the Japanese idiom and cultural references. That original translation is where the localization team gets a chance to provide feed back into the Japanese version. When the final script is completed, the translation becomes the 'master version' of the script. That master is then used to create the foreign language versions (French, German, etc...) of the game script, and the full localization in English is also created.
This is where the Localization team can take some liberties with the original as they transfer idiom and cultural references into something relevant to English players. It's also where Dragon speak went from the more direct to the obtuse and flowery. It's also where we must needs interpret the intent of the script; mayhap the characters are a little chagrined by their odd phrasing at this point - or in other words this is where all the ridiculous "olde English" crap that people love to make fun of, is thrown into the mix.
I feel that too much latitude is given and taken by the localization team at this stage. A good translation preserves the original content and maintains the emotion of the original. A localization tries to make the script feel like it was created in the local language, including cultural reference and idiom. An overdone localization extends that further applying an entirely new cultural filter to add flavor or character to the script taking it 3 steps beyond the original, two steps past the translation and a step beyond a straight localization. I prefer a good translation to a localization. I prefer a good localization to one that attempts to get creative with things.
With as much work, time, effort and creativity as Koji Fox and his team put into the game I will give them major Kudos, but at the same time I will continue to beg them to steer clear of the creative localization and stick more closely to the original script. Otherwise we are not all playing the same game. All players in FFXIV should have the same understanding of the events and dialog as it unfolds. That hasn't always been the case. If the game were a solo game then the creative localization would be very much more appreciated because it doesn't matter if there are a few differences here an there, common experience and understanding is not needed.
But in an MMORPG we need a common experience; all players should be experiencing the same game, plot and dialog. That means less creativity in localizing the game. To be honest I would prefer a good translation over localization. To me a good translation works by translating the meaning and intent of the words, not simply by doing a literal translation, and not by changing things.

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