Jumping right ahead to the final conclusion, we are unable to eliminate the distortion on the side displays with the current hardware and display specifications.
From here on out, it's going to be a bit complicated, so feel free to skip over it.
When you project 3D onto a 2D plane, there will always be distortion in the image. Due to this, when the game's 3D space is projected onto a display, which is a 2D plane, the same distortion arises.
Depending on the method in which the 3D space is projected, how the image is distorted will vary.
I'll use maps as an example. When using a type of map projection known as “Mercator projection,” the closer you get to the north and south poles the planar dimensions become distorted. Likewise, when using another type of map projection known as “Mollweide projection,” in exchange for maintaining accurate proportions, the shape becomes distorted. This is all due to the fact that depending on the method of projection the distortion appears differently.
With the current real-time 3D graphics, speaking in terms of maps, the general drawing method is similar to Mercator projection and thus the image is stretched laterally. FFXIV uses the same graphics drawing method as the processes for projection are simple and quick.
By the way, it’s also not the case that the middle monitor is displaying the game properly either. There is still very minor distortion that you can't really feel. Other than the special drawing method of “orthographic projection,” where size variations do not arise depending on depth, there will always be distortion.
On the other hand, for the world as we see it through the lenses of our eyes, objects that should be straight lines are viewed with a curved distortion due to visual periphery, though this is not normally perceived. In order to replicate this kind of distortion with CG, you have to calculate the trajectory of light as is passes through the lens, and compared to the basic drawing method of stopping with straight line calculations, the amount of calculations are greater and drawing becomes extremely slow. Due to this, for game application, most games do this by using a pseudo-procedure that forces curved distortion to the image after it has been drawn with the basic drawing method.
Even if we were able to make drawings that are distorted with curved lines, there wouldn't be a noticeable effect with the display monitors as they are now.
However, with recent hardware improvements and developments such as the Oculus Rift and curved displays, there might just come a day when you can play on displays where the image is displayed naturally with minimal distortion.
