I pretty much agree with everything you said, except for a few parts I can't really comment on (the current state of XIV NMs, the holiday events, etc., I haven't really touched the game since like last December).
As to how it seems the discussion turned, I definitely don't promote NMs or HNMs ala FFXI as far as open world content, by any means. They don't even really seem much like "content" to me, honestly. They're single monsters, with, like Grey said, not even any story behind them. They're nice to have, for little bits of nice gear that are better than average, but they surely shouldn't have the best gear you can get at any given level range for any given slot. That gear should be restricted to actual content, instanced or not.
When I speak of open world content, I mean that I want actual content. I want story and lore, I want a progressive system (tiered or point/currency based, either/both), I want several HNM/boss type mobs attached to it. I mean public dungeons, I mean tiered mob systems like in sky/sea/ZNMs but rife with story and lore attached, I mean stuff like campaign that gives some kind of incentive and reward to take part regardless of whether you're a lowbie or max level character. It only takes a little imagination to imagine other possibilities (although I don't know how well they would all work). The point is that there are ways it can be done that offer good rewards that aren't best in slot, but depending on the content could be comparable with anything/everything short of it (and if it's actual content then some possibly can be, at least situationally) without requiring the ridiculous crap that was involved with HNM timers and camping. Modern techniques can help, stuff like phasing, along with not actually leaving best in slot gear the best available for several years running without introducing better gear in newer content.
I agree with the majority saying the type of competition HNMs delivered was a negative sort that isn't necessary in the future. There are plenty of other forms of competition between guilds/linkshells that can be introduced, more constructive forms that don't require drama to feed off of. Not to mention that if it's actually done well, the competition can actually be measured and detailed, so that you can actually compete properly.
This kind of cuts to the quick, to me (although he does say he doesn't want either):
What people need to realize is that drama =/= competition, and competition should not equate to or require drama. It may bother the people who enjoy and thrive off the drama, and/or the ability to exclude others from content, but no game will ever please everyone, and this is not the demographic any MMO developer should be aiming to please (in my opinion, anyway).