I like that a lot. It's very opulent and it aligns rather nicely with what we've seen of Kugane in the previews. I am clinging to the hope that the city maintains its current stance towards Garlemald and ends up serving as a hub where both Garlean and Eorzean characters alike can walk about. That would serve to stir up a lot of intrigue within the community and make things a bit more nuanced and interesting across the board. Especially if direct violence was prohibited for the sake of keeping the peace.
I suppose we'll see how things go in regards to the MSQ's though. Some of the most enjoyable role-play I engaged in back in WoW took place in the neutral settlements where sworn enemies were forced to tolerate each other and work alongside each other for the sake of the greater good.