It's one of the most frustrating elements of the game as a former lore enthusiast. When I was more deeply invested in the setting I would take the time to do every side quest and even pay attention to the little scraps of lore that you would see in FATE's and item descriptions. It was my belief that it would all ultimately tie together as something consistent.
I think a lot of the side content was actually pretty great and it's a shame so little of it ended up being acknowledged in the MSQ's even when and where it would make sense. One of the most jarring aspects to me was the fate that befell Regula van Hydrus. It's a pretty big deal for a high ranking soldier to put aside differences with the protagonists and sacrifice himself in order to protect one of them. Especially when his dying words directly referenced his best friend, the Emperor of Garlemald himself. Though by the time a confrontation with Varis zos Galvus came about there was no option to bring up Regula even in passing.
I never expected the story to be particularly deep, granted, though the only reason I bothered to invest in it in the first place was due to the high praise Yoshi-P was giving the Ivalice games. I assumed, then, that a similar level of maturity and tact was to be in store for us rather than just surface level references.
Perhaps it was originally the intention before the game was hijacked by the venue and modbeast crowd. The game is certainly catering to them more and more blatantly these days, both in terms of emotes, housing furniture and a lack of meaningful stakes for characters who seem to exist as little more than body pillows who gush over how amazing the player character supposedly is. Alongside the development team doing stuff like making sure that food is animated to look as realistic as possible and beats of sweat drip down Estinien's shirtless form even as it desperately tried to avoid showing the confrontation between Hydaelyn and Zodiark in its raw, unfiltered form.
It is what it is, I suppose. I don't expect much more from this game in the future other than increasingly tone deaf writing, overly preachy and hypocritical protagonists and bizarre Hildibrand style emotes. I get my fix from other games these days and intend to let my subscription lapse again very soon.
A lot of my disgust for the game in its current form stems from matters unrelated to the story, at any rate. The horrific treatment of Susan Calloway being a prime example. I predict that the community will continue to tear itself apart between now and Dawntrail since that's almost a year without any fresh content other than a minor crossover event scheduled for April.