It wouldn't, really. In this game, the community would largely avoid open world PvP and those who wanted to engage with it would just wait until they outgear the competition to come around and annihilate people without the ability for recourse. Mix that in with the mandatory .5s delay on every input, the inevitable situation of SE being demanded to balance open world PvP which would presumably use PvE class kits so they can function in the PvE aspect of that game area, it'd just create a development mess for a piece of content people wouldn't participate in en masse and would basically already be DoA. Even in games where there is open world PvP, most people tend to just avoid it in the first place to accomplish their tasks while, from time to time, a max level player comes into the zone to sit on a house and one shot questing players. Not to say I don't like PvP experiences in MMO's, but I do understand the XIV community is not a community that'd willingly engage with it just based on how the game is designed and the types of experiences it tries to offer, and I think the time spent to include it would be a waste of resources best put somewhere else.
Especially when SE hasn't proven they understand how to use this game to create a genuinely engaging, unique, PvP experience that offers adequate rewards. They're still trying to get there, as the revamp for Endwalker is more or less proving, even if it's likely going to be the last effort I'd imagine they'd make unless this game's PvP community became a lot larger and more vocal. But it's very clear it's never been a priority for the development team, and is probably at best, considered a side spectacle to the main event.
In games designed around open world PvP with open world PvP incentives and a full community understanding of that being the point of the game, it works a lot better. But taking a, generally, solo MMORPG experience that heavily leans towards casual story progression intermixed with the normal difficulty completion of PvE content, it'd just piss off everyone because no one's playing XIV for that experience.


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