I find it creates a false positivity on the surface, but a sort of stifling passive aggressive toxicity behind it. We seem to have a strong casual/veteran divide in ff14 where both sides strongly dislike each other but have to pretend everything is fine.
-Some of the very casual players have taken the devs trying to cater to them as a sign that the game is casual only, playing badly is correct and that they're the most important audience. This has bred an entitled gloating self-importance where veteran players are looked down on, accomplishments are a bad thing, having everything handed over is an expectation and the bare minimum effort is put into content. They look down on players who want a challenge. This is their game. Quit and get lost if you don't like it.
-On the flip side the veteran players who are stifled, banned from even mentioning performance and constantly have content ripped away from them have a deep bottled away resentment. They hate that they're meant to carry the players who not only put in no effort, but also ridicule them as tryhards and elitists for even trying. This ends up with people being jumped on and bombarded for saying things like "I don't like dps on healers" or "I don't like wall pulls" and players having much less patience for inexperienced players.
Then you have things like Hunts, where griefing is unaddressed because "it isn't intended to share hunts, so we'll just ignore this festering community conflict and do nothing", extreme cases of stalking that goes unaddressed because they aren't saying your dps sucks so doesn't break ToS, bots everywhere, the Housing community being a cesspit and hounding people who haven't decorated their house enough because players are so frustrated trying to get one, Raiding PF's just disbanding after 2 wipes because the group can see the problem player who isn't ready for that content at all but can't say or do a thing about it and so on.
WoW was indeed toxic, but one difference I found in WoW was it was just immature straightforward rudeness. The main issue there was the GM's didn't give the children a much needed slap on the wrist from time to time, but it was easy to ignore or disprove. FF14's toxicity is much more complicated and ingrained and almost impossible to counter because on the surface it's always calculated to stay just within ToS. In some ways I dislike that even more.