Type-0's scenario came from Tabata, and it's basically a blueprint for every mistake made in FFXV. I don't think this excuse flies at all.
I've played four of his games now (Crisis Core, 3rd Birthday, Type-0, and FFXV), and I've hated three, while thinking the last was just okay (Crisis Core). The gameplay is always shallow, and the story tends to suck :/
But it's still part of the Fabula Nova Crystallis. Of course as the director he has a huge level of creative control, but it's hard to imagine a bunch of spinoffs and a reboot from a Nomura project are "passion projects" of his. He even talked about how he had to force himself to like Noctis, because at first he just didn't like him at all.
Sure, he lacks a lot in storytelling, but working on something brand new, with no ties to anyone else's work, he would be able to focus on the kinds of things he enjoys the most.
When you take FFXV and its narrative, the best parts, or at least what I consider to be the best parts, are the calm moments of interaction between the main cast, the road trip aspect, as well as some of the world's lore. But it was all poorly executed and explored through the main plot, which was composed by remnants of the Versus project.
I'm not saying he has no fault in the games' shortcomings, or that a better director wouldn't deliver better games, but when I play his games, or at least the ones I did play, I don't see someone who should never be allowed to work on another game, I see a lot of misplaced potential. If he sucks at telling epic stories through well directed cutscenes, maybe we'd have a better story if he didn't even try. But he can't do that, because it's Final Fantasy, because it's specifically the reboot of the Final Fantasy Versus XIII project. I do think a more intimate story about these four friends and their camaraderie at the front, while you explore more of the world's history through gameplay, would make for a much more compelling and fulfilling story than having this epic plot involving astrals, ancient bloodlines and kingdoms with such a poor presentation.
Even on the management side of things, judging by all the interviews, he seems to be very good at managing his team and resources. Parntering him with Nomura as they did in the early XV days could actually have been a brilliant choice. Too bad they took Nomura out shortly after to work on VII Remake. Putting people to do what they do best is something that some times I wonder if wouldn't drastically improve the quality of their titles. Toriyama's stories are also... weird, but the man can certainly direct a cutscene. He's great at it! Why not let him focus on this kind of thing, instead of letting him create his stories and be in charge of game design? I don't get it.