The original version of XIV wasn't like this at all, and that version was a massive flop, but then it was rebooted into its current incarnation by Naoki "Yoshi-P" Yoshida, who has extensive experience playing MMOs for decades from Ultima Online to EverQuest to old-school WoW (I would recommend watching Noclip's documentary on XIV [1] [2] [3] for more on Yoshi-P's background and the decision to completely reboot the game). It's precisely because of his experience with the warts and frustration of old-school MMOs that XIV is so streamlined and committed to not wasting the player's time, and XIV is massively, head-over-heals successful for it.
It turns out people really, really don't like forced socialization, and when an MMO comes along that does away with it, people flock to it in droves. The facts don't bear out your allegation that forced socialization is "the real reason most people stick around": XIV's runaway head-over-heels success is due to the fact that it so thoroughly eschews forced socialization that it's often described as a single-player JRPG punctuated by multi-player instances and a completely optional set of social side content.
[1] part 1 https://www.youtube.com/watch?v=Xs0yQKI7Yw4
[2] part 2: https://www.youtube.com/watch?v=aoOI5R-6u8k
[3] part 3: https://www.youtube.com/watch?v=ONT6fxiu9cw
Current game designer Ion Hazikostas is a hardcore raider, guild leader and completed every raid in game on the highest difficulty. I don't think it's fair to qualify him as not playing the game. Of course I have no idea about their internal chains, that's only a public high-ranked figure.
I'm generally agree with your stance and I don't like many changes either. But I can accept that those changes actually were necessary for the game to survive, as current playerbase is completely different from those who played the game 10 years ago.
Also, Blizzard tends to over-focus on the behaviour of Mythic raiders who are like 1% of the population. And I don't mean they cater to their needs. I mean they burden everyone because of perceived "abuse" that would otherwise occur were something not in the game (eg conduit energy).
Classic was "hard" because of organizational challenges, patience requirements, and most importantly lack of information. Access to information has completely changed the game, explaining why it took people virtually zero time to beat MC this time around. The classic of reading some sketchy material on forums to understand raid mechanics and raiding with keyboard turners is gone and can never be recreated.
In short, WoW has transitioned to being run by people who don't play the game, don't understand people who do play the game and are targeting the game at people who don't play the game at the expense of those that do.
LFR undermines both the aspirational part of the game, which is extremely important, and the social aspect of building relationships, which is super-important and the real reason most people stick around.
Now we have 4 raid levels (LFR, Normal, Heroic, Mythic), which is too many. The differences are largely cosmetic and minor ilvl bumps. There are some unique items in higher tiers, to be clear.
Lastly, LFR is essentially an interactive cinematic. It's part of what I like to call "conveyor belt content". There's no choices to be made. The outcome is almost certain. You may as well be watching a cinematic. This probably goes well beyond LFR.