What's the point with that quite lackluster story in Endwalker?

[Theodric]

I don't really know what you mean.

Ishgard was a corrupt theocracy that imploded on itself when its religion was revealed to be based on a lie. Their government may be a republic now, but that's more Aymeric's doing than the Scions'.

Gyr Abania decided themselves that, based on their history, reestablishing any sort of dictatorship was a really, really bad idea. The Scions explicitly had nothing to do with it.

Doma is literally still a dictatorship.

Eulmore was a former cult of personality that, again, decided to elect a democratic leader themselves.

Pretty much every leader figure the game has had our character interact with has gone one of two ways - either they've been killed or they've conveniently done exactly what the Scions have not so subtly nudged them into doing.

I'm already dreading the idea of Alphinaud and Alisae seeding the idea that Garlemald should do away with the idea of an Emperor so it can instead become a democratic republic again. An act which simply serves to strip away a lot of the established flavour...and it'd be further salt in the wound after the region wasn't even given the dignity of an actual expansion largely focused on Garlemald and Garlemald alone.

I also don't really consider the mere existence of a monarchy to be a 'dictatorship' or worthy of scorn. They're a key part of my own country, culture and ancestry and a large part of why I enjoy fantasy settings.