I'm not huge into endgame either way, so it probably wouldn't make or break any game for me personally. I do think that the best game would be one that has both options (as well as other systems that take a long time for people who don't like big groups at all), so that more people are able to enjoy it.

I never liked that some games instance ALL of their content, since that defeats the purpose of having an expansive MMO world, but I wouldn't want there to be NO instances like FFXI either.

As for Yoshida's comments, he also said this:
Quote Originally Posted by Producer Letter XIV View Post
I hope you’ll enjoy choosing between light and full party raids based on whatever kind of groups you find yourself in from day to day. And don’t forget about public dungeons, because we sure haven’t!
So they're obviously not going to instance everything, even if more rare drops are instanced than not.