Back when I played the open beta I warned on another forum (that won't be named) that FFXIV is probably going to fall, and likened it to recent catastrophes like APB. The response? "Unlike APB, FFXIV will get a console release. It won't fail." The idea that it had this looming PS3 release date - and is the only true next-gen MMO for a new-gen console - seemed to be what gave players confidence the game servers wouldn't close for good any time soon.
With the PS3 version indefinitely delayed, now I'm not so sure. Certainly even a totally revamped FFXIV is going to suffer at retail from the sullying of the title from the flawed PC release. Now that they're unwilling to release this flawed game on the PS3, is it really worth putting a lot of effort into improving a game that, no matter what you do, might never take off because it's got so much baggage?
If I were an exec I'd say start over. You've got the engine, so it's not a total loss. Take the working elements from FFXIV and make a brand new MMO with a new team.