We are brutal to the beast tribes

[Dikatis]

Snip.

The point isn't that everything is fixed and hunky dorky. Merlwyb sticking her neck out is the first step toward peace as the Lominsans are likely to renegotiate land and formally enshrine the recognition of Sahagin and Kobold territories and their rights as sovereign nations and people. But there are sitll problems. In the melee DPS quests, the Coral Tridents are still devoted to Leviathan and want to summon him again, with their version of events driving the Sahagin broodmother into despair and turning her into a blasphemy. And yet, Merlwyb's choice to finally bury the hatchet when she wasn't opposed to going to war with the Sahagin again in 2.0 is acknowledgement of the Lominsans' wrongdoing and a first step toward peace, as shown by how she is able to actively cooperate with the "fishbacks" she would've shot dead on sight at the start of the story.

The Syndicate definitely hasn't turned over a new leaf, but Lolorito's peace offering of half his wealth in exchange for a blank ledger means that Nanamo has the coffers necessary to properly push back against their policies. Pipin has likely taken over Raubahn's seat on the Syndicate and Nanamo's growing confidence means that she's much more likely to be able to handle herself and lead Ul'dah to a more equal future. With all likelihood, the Amal'jaa and Goblins will likely be treated like the Zun on the First if Nanamo is able to stay the course.

Ala Mhigo is still rebuilding, with Nanamo and Raubahn having to keep an especially close eye on contracts to keep Lolorito from robbing the Ala Mhigans blind. But progress IS being made toward rebuilding Ala Mhigo, as shown with the restoration of the Saltery and the addition of new businesses like Crown Gemworks (Goldsmith questline).

We don't have a clear picture of what's going in Gridania so I won't draw any inferences, but Gridania in general has been trending toward being increasingly open and less xenophobic as it grows increasingly involved with the rest of Eorzea and its seedseers' increasing contact with the outside world. There's no telling what will happen to the Ixal at this point, but Sezul Totoloc and Tataramu are likely lend a hand in that regard.

As for the whole untempering thing, the Eorzean Alliance has always restrained the tempered first before untempering them. Whether they "want it" or not, it's not a state anyone would truly want to live in, as shown by the Kobold patriarch's horror at what he did under Titan's influence.

It's a little idealized sure, but Final Fantasy is an idealistic series in general. I don't think Eorzea trending toward peace removes its complexity as there are still problems to tackle and things to solve. There will always be schemers and bad guys waiting to exploit others, but that doesn't mean things can't get better or that the city-states are all permanently set in their ways.