I don't see why it's 'modern' to force people in local servers while globalization is what today's business is all about.
Why would you seperate people into geographic locations for an online game where the whole point is that it doesn't matter where you connect from? I'm completely against this as it only limits the customer in the end and offers no real benefits. FFXIV doesn't suffer from connection lag unless your connection is just bad, in which case that will also happen with a local server.
For those advertising for local servers because of communication issues: that happens a lot on the european servers as there's a large community which only speaks their native language.
Take Starcraft for example. I cannot even play with my american friends because I live in Europe and want to play with my local friends too. Talk about flawed systems.
No, I only see local servers as a downgrade from the current system.