In regards to everything you have said. The idea of balancing casual, midcore, and hardcore is not finding a piece of content that mashes them all together. That isn't really a thing. What is a thing is how you create content, how accessible it is, and how does it create a lasting appeal in the long run. These are fundamentals in creating balance. Note where I said "accessible", because this is the absolute most important thing for an MMO today. It shouldn't be gated heavily like FFXI nor should it's consequences be like it where if you lost a KSNM, you had to farm the seals to try again. That is a bad type of gating for this type of game.
I don't believe in complete hand holding and yes there is a lack of hardcore content. That I can completely agree with. SE caters way too heavily on the casual side and yes, midcore and hardcore suffers for it. Creating a story mode for Alexander was a mistake in my opinion and the previour tier and this one shows. I would of set it up like this:
Even patch: Alex(Normal) (FCoB level of difficulty) > Alex(Savage) (ScoB Savage difficulty)
Odd patch: Content that will help gear people better for beating Normal.
Even patch: As said above, but do the following to the previous tier: Add an echo buff to normal and tone down the mechanics so casuals can get a win on it. For Savage, keep it at a mandatory ilvl restriction for whatever the cap was during that patch's prime. That way, the difficulty is always there, even two or three expansions from it, it still retains the same level of difficulty as when it came out. This keeps content relevant forever. Add mounts, minions, and titles so when people see it they are impressed and not going "I bet they did it unsynced".
This here alone fixes a lot with what is wrong in the balance of midcore and hardcore. I am sure the people who prefer story mode are going to chase me with pitchforks, but sorry, I believe content made for midcore/hardcore need to be catered to first then casual later. Its a much needed balance unless SE can dish out three difficulty modes. The balance is that casuals will get to play this mode at their level eventually and always welcome to try it without being heavily gated beyond gear checks.
Of course at the same time, we have to balance content in other things to appeal to the casual while it may be beneficial for midcore/hardcore down the line. Its a very hard thing to deal with and FFXIV does have a lot of faults in the system that need to be addressed. However I simply don't believe FFXI's systems are the answer to it. Can simply agree to disagree on that particular notion. I believe FFXIV is in a problematic state, I just can't agree to a lot of the solutions in here.