Today we are going to take a look at the FATE system in FFXIV, it’s function, it’s history and how we could improve upon it.
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Regarding Rewards, those Bicolor Gemstones really helped me out as a Crafter that had no Max Level Hunting Retainer yet, though of course that's quite a niche. It would be really weird to see FATEs becoming an extension for mostly leveling Crafting and Gathering, just like Leves, but with some Combat Exp on the side. Wouldn't want that either.
I like your idea of "Siege" like Events. Maybe lean more into Area-wide Events that get triggered by completing certain Tasks or FATEs, that then lead into Challenges or Spectacles. Kind of like Bozja I guess, but please on a scale that allows Solo Players to participate somehow while waiting on a Duty
I think "Rift" did these kind of events best. There was always at least one "world boss" type event up at any given time, and you could see it was up just by looking at the world map. High level players could go destroy monster spawning rifts, while low level players could go around gathering resources. Eventually the world boss would spawn and everyone closed in to kill it. As for rewards, I think it was the equivalent of tomestones in this game.