I feel like SE storywriters were given a rough job of it, since they were tasked to write a storyline on some abstract threat looming in the shadows, but let's not forget the FFXI storylines which were so good usually were pretty slow-to-start as well. One of the differences was that in FFXI, I really felt like I was a part of my starting nation, but in FFXIV I don't get that feeling at all.

I can't get attached to a world where I don't have a place I can call home. The threat is looming, big deal. Take a glimpse at the forums to see how much characters really care about the meteor headed our way. (most welcome it)

There is no rivalry and no sense of patriotism, save for those moments of joking around with your LS mates about where ground-zero should be for the meteor.

I believe there was a time when it was said that the world is too peaceful to be really engaging and they have added this and that along the way to help with this, but it's all a build-up to 2.0. I am optimistic about it. SE's storytelling abilities really shine when they have a specific threat to work with. (The two judge-looking imperials are pretty cool, but didn't really get enough facetime for me to even remember their names, and again "looming" is the byword, not really "imminent")

So in summary, I think they'll do great once disaster actually starts happening, assuming they can make us a little more emotionally invested in the city-states.