I don't think WoW and FFXIV are competitors. At all.
As for the pricing... I'll have to agree to disagree with you folks. I think considering the failure of 1.0, it would be a good move to provide the game cheaply, and get more total people locked in.
I'm trying to put myself in the shoes of an average kid browsing his PS3 when the PSN updates... if I see a $40 MMORPG, I'm likely just going to roll my eyes and skip over it. A $20 MMORPG could be worth looking into. Then I could end up getting hooked.
$15 monthly would be the same price as World of Warcraft, but it's not World of Warcraft. Hopefully the bulk payment options for FFXIV are good deals.
Any game on the market is a competitor, weather you see it that way or not. they are all trying to get your business.
You would seriously roll your eyes at a game that is cheaper than most of the rest?
No, I wouldn't. MMORPGs make big money based on 1. a lot of people playing, 2. people playing and paying for a long time.
If people consider the prices too high, they're missing out on getting those peopled hooked in (which is where the money lies -- getting people hooked).
MMO's make a big chunk of their dev costs back through box sales. The monthly fees keep the servers running and pay for more content, and partial profit. The only people that might feel the pricing is too high, are people coming from F2P mmo's in which i would say to them:
Welcome to P2P, where you get what you pay for.