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Extrapolating from there (and, again, I can't argue with someone who wants to say this is an unreasonable extrapolation), it feels like this isn't a decision that they're being forced to make, rather than finding an alternative solution.
The question (which is far more important in the grand scheme of things than any bickering over housing space) is why a game that's such a huge success, both critically and commercially, isn't getting the appropriate resources to support and take advantage of that success.
This decision seems to be based on player feedback and the things that people were asking for for a while now. This was announced a while back as well, wasn't it? I doubt that this will be the only step they take to try to fix the housing system (at least I hope so, anyway). Heck, this might not even be a permanent implementation, either - they could very well change aspects of it going forward. It hasn't actually been added yet, after all.