Hi fren! I wondered this whenever I first started as well. The conclusion that I came to is most similar to the latter part of your question. My impression after six months or so is that it's just better EXP and droprates. I think because of the amount of content that has been added on this server, there will always be something difficult but fun to do. Even at max level with good gear, there are some encounters that are still a challenge (in a fun way). Some of the earlier content can feel kinda faceroll after a while but you can always just up the difficulty at that point.
The way I look at it is the path to getting to the "end-game" might be accelerated but even once you get there and have been for a while there's still tons to do. Which is great for me because that's the kind of stuff I like. At least that's been my experience. Hope this helps and welcome!