I don't know if only 5% of the community engaging in Savage raiding is seen as a problem with raiding by those people because that's pretty much the expected level of engagement with organized raiding (both in previous tiers in FFXIV, and in other MMOs, like WoW).
It's a problem with FFXIV's end game (and, again, also WoW's end game in Warlords of Draenor, which is a factor in their nose-diving subscription numbers over the course of the expansion) that organized raiding is the only meaningful end game, but that's not necessarily a problem with raiding itself.
If that makes sense.
I think the number of raiders who'd complain about having more variety (possibly even at the expense of raids, if it was suitably rewarding/engaging content) is an extremely niche group. I know I was excited for Diadem (prior to its sub-par implementation), and I'm very eager to see what Palace of the Dead has to offer.
Probably the biggest hiderance to PUGs in top tier raiding is the number of mechanics that require between one and eight members of the raid to execute them where a single failure by any person results in a raid wipe (either instantly or simply because it becomes near-impossible to recover).
A lot of those mechanics aren't all that challenging to execute correctly (e.g. High/Low Arithmeticks and Height), but the fact that they require perfect execution every time is always going to be a significant road block to PUGs because there's no long-term accountability to the rest of the group.
It might be just a semantic difference, but I think it's less that people got worse and more that the minimum bar for performance for most classes was raised significantly.
Say I'm capable of juggling batons and one day someone asks me to do it while riding a unicycle. Or to juggle chainsaws instead. If I struggle with one of those, I didn't get worse at juggling, I just had to juggle under more difficult circumstances.



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