Depends on who you talk to. A couple of my friends who consider themselves "WoW mains" are already back to FFXIV. They had fun for a couple of months but then got bored with Dragonflight.
I think what we're encountering is the door swinging both ways. Players who spent years only playing FFXIV are giving WoW a try and finding it fun because there is so much there to do that is effectively new to them. Players who spent years only playing WoW are giving FFXIV a try and finding it fun because there is so much to do that is effectively new to them.
It's not a bad thing for players to be playing both. The gaming industry in general would be better off without the rabid tribalism that some players engage in.
I don't think they're giving up. I think they're trying different things to see what gets more players participating.
They know how many players completed at least one if not multiple relics in each expansion. They're probably also trying to keep in mind new players to the game who would like to start their own collections but find the amount of grinding a bit overwhelming.
It's an interesting psychological experiment. Are players more satisfied when they feel forced into doing content they don't particularly for the sake of getting their shiny weapons or when they're allowed to the content of their choice to get their shiny weapons? How many won't be interested in shiny weapons if the content needed to acquire them isn't in part new content unique to the grind?
I think the big problem with this expansion's grind can be summed up in two words: hunt trains. And I'm saying this as someone who does the scouting and conducting. They're just too darn efficent and lucrative for the amount of time needed to go from zone to zone to kill everything, and too accessible with world visit/data center travel. S ranks just add to that. If everything is timed right, you have the tomestones for a relic/upgrade in less than 3 hours.
If hunts didn't reward tomestones so everyone had to opt into doing other content to get them, would the relics feel like more of a satisfying grind?