Relocation is a bit unfair in that it gives owners an advantage as to the plot of choice over those who don't own a house. As mentioned by many here though, it doesn't remove a house from the market given it also frees up a plot somewhere else. I do believe the rationale behind the transfers is to relieve the log in stress and overcrowding a new release would bring to the servers.
It's possible that new housing releases my have different rules but I suspect the current system is something that seemed to work on may servers and surprisingly enough there are still plots available on many of them including my home server Siren. Relative to Balmung, I don't think any solution would work other than an instanced housing set up. I have a toon on Balmung and I get the message every time I log in trying to coax me to move to another server.
