Although I agree with some of the points, FF14 still retains plenty of confidence based on its financials.
SE's Q1 result does show decreased sales overall but their gross profit has never been better -- this means SE isn't spending much and making more money -- FF14 is one of the major bread-winners for SE that brings income every month. I doubt any of the executives or the shareholders feel any confidence issues exist with the game.

Thus, the whole premise that "FF14 needs to restore confidence" doesn't make sense. What confidence? Your own? Then it's just your opinion.
It is okay to have one's own opinion but to write it as if it is a truth acknowledged by a large number of people isn't all that convincing.
Similarly, when using words such as "indisputably" -- I would like to see data that would show how indisputable it is... if not it's just your opinion.
(no offense really, but the argument will become stronger with data especially when based on financials the point seems less supported)

With that said, I would agree that the overall world seems less "lived in" compared to HW or ShB or even with ARR.
The new areas in EW include places that are uninhabited, but even in the places that have habitation t doesn't feel all that convincing as a setting.
One thing is the lack of FATEs that involve towns / cities that gives me the feeling these storytelling devices exist only as disconnected points.
It's a similar feeling I had in SB's story especially in the latter half of liberating Ala Mhigo.

I didn't find Hermes horrible -- I liked the story of him and Meteion.
The idea that having too much hope that some solution will bring rose-colored results ends up in total disaster is pretty good.
(that and I don't expect superb story-telling from MMOs when there are so many factors that can derail consistency)