People...... While this also bothers me... I think we are looking at the entire situation backwards

So allow me a little Devil's advocate here

I don't think they are saying the PS3 version is STOPPING them from upgrading the engine

I think they are saying the PS3 is the reason it was never DX10 in the first place

This crystal tools engine debuted on FFXIII
the engine was made for an openGL based PS3
For those of who you dont know... that is a completely different language than DirectX
There was a LOOOONG delay for FFXIII getting the engine ready to support DX9 and the Xbox 360
(Originally FFXIII was going to be PS2 only, then PS3 only and finally PS3 and XBox 360)

I have not seen any of the coding for the engine.... But it feels like SE is saying DX10 never made it past the cost analysis phase
I know you'll hate to hear this... but from a business standpoint... DX10 would only benefit PC players and right now, PS3 players are the demographic that would make this game profitable
FFXIII did 1.7 million on PS3 IN THE FIRST WEEK OF RELEASE... IN JAPAN ONLY
Even 25% of that would double the FFXIV PC numbers
And even if people don't stick around, 500,000 copies is, at the very least, a quick 25 million
So it seems the decision was made to focus on updates that will benefit both PS3 and PC players (Content, battle system) over ones that will benefit the PC players only... and could require much of the code for the engine and game being re-written
Does it suck... yea...

Does it bother me... Hell yea.... but it is what it is