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A thing I'd really like to see for housing are paintings to put on the wall, where you can actually display screenshots you've made ingame. It would be really nice to be able to put a picture of the members from my FC on the wall instead of those creepy pictures of various NPCs (like Hildibrandt & Nashu). Or maybe be allowed to put up a nice scenery picture you managed to capture somewhere while traveling Eorzea :)
Unfortunately as awesome as this would be to have, I don't think SE would ever allow it, for the same reason they do not allow custom artwork for Free Company crests, which they stated back during the Beta. And that's because of human nature - inevitably there would be some smart alec who would think it funny to use a pornographic or offensive image in such a way that would be an obvious Terms of Service violation.
Thus to prevent such possible ToS abuses, SE would have to set up some kind of system to individually screen every piece of artwork or screenshot submitted to be used, a time consuming effort that would waste development resources, resources that could be better spent elsewhere. Resources they don't want to commit to such a venture.
So unfortunately, as much I would love to be able to do this, I don't think it would ever happen sadly. :(
This was already commented upon that it could be used to put offensive images up so they opted not to do it.
They'd just have to restrict it to images taken from inside the game, seen other games do that.
Of course that would require them to implement something to collect screenshots ingame, like a camera mode or so.
That's an amazing idea. I thought about something similar and sent an ingame suggestion some time ago, I hope they hear us!
About people abusing it, just as Lelila38 already said: just take the screenshots directly from the game, other games already do that.