I read a BLog of the Press Conference with Square, thinking it'd have more interesting stuff than FF14...but alas, it was all FF14 OMG LETS ASK EVERYTHING! and such.
Anyway, its *NOT* Vandi'el or whatever the FF11 world is called. They explicitly stated that. They merely are keeping the races the same, so people who go from playing FF11 to FF14 feel more familiar with the game, such that they know the ups and downs of characters, can make characters reminiscent of their FF11 counter parts, etc. It was basically a total familiarity thing. They stated that it is not in anyway related to FF11, be it story wise or setting wise, so it isn't QUITE as pointless as it sounds.
It also sounds like they're not dropping FF11, more just making FF14 different or something? Still, that conference didn't answer the question of "WHY THE FUCK WOULD THEY MAKE ANOTHER MMO MAIN STREAM FF GAME?" I mean, couldn't they have called it "FF Online" or "FF Social Network" or something? It kinds of irksome when you want to say something like "I've played all Mainstream FF games...except FF11 cause its an MMO" or what not.
(yes, I'm whining about something stupid but well, you know me <_<)