FFXI is an MMORPG released on the PS2 and PC. The reason why it looks no different on the XBox is because it was tailored for the PS2, therefore it's using PS2 graphics just like the PC version is doing. All SE has done is made it that those who don't own a PS2 or a PC but own an XBox are now able to play FFXI on their XBox, but they'll be getting the same quality graphics that are used on a PS2.
They could've done better if they had a HD setting that was enabled only on PC and XBox, but I guess they had their hands full trying to fix FFXIV and took most of the FFXI team to go work on that abomination. They refused putting in features that would improve the PC version like minimaps because they can't make minimaps on the PS2 and they don't want PC players having an advantage over PS2 players. That's why the controls are as clunky as they are.