Yes, it got a lot better, but it also still has a long way to go... I'd wait until next year sometime, or at least this fall at the earliest. Like 40+ people from my ls are all on extended break until they are done overhauling it, including myself and the other leaders.
As for the overhauls... UI is a lot better, and will get better... Job system, battle system, quest system, leve system, crafting system, and etc. are all partially overhauled, with massive complete overhauls still in the works. Like, they are completely changing the job systems, even down to the names and etc, and the battle system is also going to be 100% different, and it will use auto-attack and a focus on strategy and non-repetitive combat.
They're also going to add in dungeons and a myriad of content, which the game needs... New branch of crafting, codenamed the 'materia system' atm. And the list just goes on and on. They fired the main team shortly after launch, and brought on a nice director and a team of veteran FFXI devs. It won't be an FFXI clone though, but it will probably resemble the game a lot more than it did at launch, which is good or bad depending on who you are.
Personally, I see it being the best mmo once they are done with it... But it's still basically in development right now. Put it on the backburner, play around in D3 for a bit when it comes out, and give FFXIV another shot in a year or two. If you don't like it by then, you should probably pass on it. But the game as it was at launch is dead and nobody liked it, so yes, it will be a completely different game before they re-launch it with the PS3 version.
Oh and SE also has another mmo due out sometime soonish. Not much word on it yet, save for the top guy at SE saying they aim to maintain 2-3 mmo's at a time, and that they aren't scrapping FFXIV, and the new mmo is expected to be something totally different from the FF mmo's. Might be something of interest, might not. Who knows.
