What worries the most as a music producer, is the fact that if I want to play a song, I should be able to play it without the fear of being banned.

Making covers of songs is not illegal. What really is weird is that cover songs are covered in fair use. I'm not making a profit off of FFXIV cover songs. I also do not need rights to use a certain instrument to make cover music either.

Square Enix seems too worried about "possibly being sued", but if u are going to allow bards to play music in-game, then why are u restricting it?

Other games that utilize playing an instrument in-game, also does not req. u to play only their songs. There is literally nothing illegal about playing a cover song. This is why street performers aren't sued on a daily basis.

We are essentially street performers in a virtual world, except we don't collect tips for display. There shouldn't be any rules about what songs u can and can't play, nor risk being banned for it.