In most occasions in FF, playing music has some sort of effect associated with it. There have been breaks with this but most music hasn't been just for the sake of music itself. As far as FFVIII... I've forgotten more about that game than I care to remember, I see it as an side-layer in the mythos and it doesn't really quite fit with the themes of the rest of the games.
Also with the comment below:
I'm sorry, LotRO had immensely larger and more sprawling zones than XIV and many many more hub cities so the chances of overlapping with others wanting to play was low and most would give you space if you were playing something in a spot where they wanted to play. At the Pony there was a huge area that you could have at least 6 or 7 people playing in and none would be crowded over the others. You don't even need to think about MD... if you talk even like places around the MB in Limsa you already have people who love to do nothing but spam Holy and do Goon 'pole dancing' to no end.
TL;DR: Thematically it doesn't really fit with what music can do in the FF world archetype. Zones are also far too small and too crowded to make the system viable without being obnoxious in most cases.
This, however, is my opinion... please do take it as that.