What's the point of Physical and Magic Damage Types

[YukikoKurosawa]

You see that spell the enemy mage is casting?..


...... that's definitely physical damage.


And for the love of Hydaelyn, don't even start with "Just make it all one type of damage" to dumb it down...

Circle of Scorn has your PLD slam their sword into the ground causes beams of blue energy to erupt from the earth damaging all enemys and causing them to suffer a DOT. One would naturally assume it's a spell, right?

But it's not a spell, it's an ability. Is this physical or magical? You tell me. Because the game sure as hell doesn't and I sure as hell don't know if my physical dmg buff has any impact on it. This is the problem. The game fundamentally fails to distinguish between physical and magical attacks because the animation are outright deceptive. Other games don't have this problem so why does FFXIV?