I'm going to respond to this thread, and focus on FF12 and FF13 rather than the sulky over-dramatic article about how an entire franchise is dead because one fictional character in one of the games got breast enhancements.
So,
Final Fantasy 12 had some brilliant ideas, and lots of potential... but the game reeked of incomplete/rushed development. A good symptom of this could be seen in the towns that had huge wide open areas with lots of buildings and literally nothing to interact with; the background art was probably done, but they didn't want to put the resources into foreground models, and any sort of quality approval passes. FF12 also just plain suffered from the transition from overhead 2D into full 3D; it highlighted the biggest flaw with PS2/PS3 RPGs... That is, the world's were gigantic and had nothing to do except walk and fight lots and lots of battles.
Luckily things did improve, but I couldn't help but to feel that this could have been done way back with FF12. The answer to the problem with FF13 was just to make an incredibly linear world where users really could only go at one direction, and while this model does allow better control on the pacing, it doesn't seem like FF13's pacing was really all that much faster than FF12's. The linear model also created new problems, most notable was preventing a change of pace for players players who might want a "change of pace."
Xenoblade, that's what FF12 should have been. There's no doubt Tetsuya Takahashi had inspiration from that game. He took the FF12 model and made it work. The gameplay is more polished and more interesting. The world is massive, much more so than FF12's, but there's something to do EVERYWHERE. The pacing of Xenoblade is also excellent whether you're following the main path or diverting to do one, two, or a few dozen side quests/stories. Xenoblade also doesn't rely on the huge streams of battles like FF12 and 13 did; so I didn't end up getting tired of battles like I did in FF12 and 13. I do think that if Yasumi Matsuno had been on the FF12 project all the way through, and it wasn't rushed, that it might have been the great revolutionary title it was supposed to be.
-Insert Inspiring Quote-