Just wanted to addressone of your points, because point 1 is more of a grey area then the Hero Engine is crap.
Bioware bought an early build of the hero engine, and did not contract the Hero engine designers for updates. They then re-programmed the bejeezus out of it. The Engine Bioware used could be hardly called the Hero engine anymore.
Class balance was pretty lackluster. From 1-50 I enjoyed my Jedi Shadow enough. I found some of the base issues are slightly covered up by the fun of being a Jedi. Weeee. then hit lvl 50. All the money (and lots of it) i spent for crafting, useless.
One of the big issues i think BW found was Faction imbalance. They totally ignored the probability of a large segemnt of people gravitating to the Dark side. And did nothing via effects, cool moves, cool gear or ANYTHING to prevent, nor systems to fix, such an issue. They instead denied the issues, but its not easy to hide the difference.
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All in all, i belive the OP argument is faulty on the grounds that Because SW:tor failed, Casual doesn't work.
Not adding goals to progress over the long term can hurt a game.
But "instant Gratification" is not limited to those with only a few hours to spend. One of the best ways to facilitate quality crafting and stable markets into a game is to make Endgame rewards depend on Crafters to furnish the "phat lootz". But even some the "hardcore" don't want to depends on anyone beside their static group.
The "glory days" of hardcore gaming had a MUCH smaller amount of games on the market too. Companies will go where the money goes.
The only way to make your MMO desires known is to as a gamer, stop paying 100+ dollars for Collectors edition access before we even know what we're buying (The Secret world, i'm eyeballing you!)
I had more rant, but i'll pass since this will likely get buried. My thoughts are not the same as the OP. A solid game with a solid gameplay for all can be done. A single game need not have a single audience. Its the mechanics and systems placed there that decide that.