While I do agree with your points, I feel compelled to point out that DRK has not historically been about life steal effects. In fact, it has traditionally been about shaving off its own life to deal high levels of damage. This does not, however, mean it shouldn't be about life steal in FFXIV.

As for Living Dead; it should just go. At this point we know they aren't going to change directions to suddenly make DRK the drain tank. Instead, they should replace LD with an ability that gives you a ridiculously powerful shield, maybe totaling several times your total HP pool. This would fit with the job's barrier theme, avoid giving them a tool as broken as HG, and allow them to utilize it without their healer wanting to shoot them.