Instanced housing in the form of improved apartments, and improved housing districts.
I'll go with instanced housing, in the form of improved apartments, that can be readilly purchased by players, with wide customizable apartment space having an outdoor instanced balcony (kinda like the one in eulmore upperdeck)which follows in game time and weather, and allows large scale gardening. The apartment courtyard will be massive with all sorts of npc merchants, mb, and summoning bell. (Kinda like the wide crystarium open space going to the crystal exarch's occular).
The housing districts and ward system can still be continued as somewhat a rare resource for those who want to compete for a plot. Hopefully housing districts will also have some improvements to its neighborhood aesthetics.