I doubt very much SE thinks it is acceptable. I think they are still sorting out how to properly fix things.
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You want to tweak that. "This is why SE won't pay to have instance housing." Because they would have to increase the amount of hardware. As proof of concept it seems to works. The only limitation seems to be hardware.
The question I have is would inside and outside load simultaneously. Removing the loading from entering the house. Maybe removing the restrictions from indoor and outdoor.
I strongly dislike the sub model and cash shop. But at this point if SE moved instanced housing to a tier of sub. It would let people pay for what they want.
Other MMO's use different engines. TESO lets you block a power swing from a 2-handed steel greatsword by holding a simple wooden bow up in front of it and the greatsword just bounces off...
Meanwhile, WoW - the most "popular" MMO of all time - doesn't even have housing.
Point simply being that different MMO's use different tools with different strengths and weaknesses. Just because one game "can" do something doesn't mean every other game must be able to do the same exact thing. I'm content with housing existing in its current form in FFXIV given everything else I really enjoy about the game.
This is partially why they wanted to have the NA server expansion, even though we're not really at server capacity, before IS was launched. They'd also be able to upgrade all the other servers at the same time.
Sucks that it got delayed until November.