There is a lot of anti-Japanese shitposting going on sure, but it does hold a basis of truth. FF had a drop in quality when it stopped being ATB/turn-based that has lasted for over two decades now, and never had a true successor of that scope.
Persona was just too different, with it's school/calendar/social link setting,and Soejima's artstyle further and further devolving into generic post-2010 anime.
The Japanese have just allowed the genre to stagnate, their suits unwilling to take risks and innovate, or allocate the kind of budgets that allowed for turn-based FF at its height.
The truth is though that E33 is an anomaly in the west as well. It's no wonder that the director is a disgruntled ex-Ubisoft dev. It would have never been greenlit by any of the large western corporations, same as it wouldn't have been greenlit by a Square Enix or Capcom.