It appears that free companies wants the largest plot possible. Am I wrong?

I notice that most of the large plots and medium plots are taken in the free company wards in Gridania, Uldah, Limsa, and Ishgard; and I also know that many FC wants to have the large plot but it is limited and very competitive to have one since now you set up the lottery system; which was a very bad idea as well. I can see why some people are really frustrated, especially with some of the free companies at a disadvantage due to lack of funds or members. I will add that instanced houses would be a great idea; but will not due to those who like to decorate the garden and house, which is an advantage with Final Fantasy XIV.

Since Endwalker expansion came out and as long as I have played since A Realm Reborn, it would make sense to have more large plots instead of small plots since everyone is "eyeing" the biggest prize.

Thank you.

If you lack the funds and esp if you lack the members. You don't have prio over a large FC that has both. The larger house allows for events to be held and actually fit all the members inside comfortably.
Even then you still have a shot at the house. Fc's had a heads up to get money sorted since we started rebuilding the firmament. And when the lottery system was announced that should have put the fire under people who really want to increase their odds to get the gil. It is an advantage they worked for and rightly earned. Nothing was stopping any FC from doing this. Making money in this game is not hard if you care to put the effort in.

Still, agree instanced housing would be nice. You can still have an instance that also has a garden, idk why it has to be like an apartment in your mind.
The housing as it is now is the best it has ever been, sad as it is. Until we see some change, gotta grind out that money.

I personally don't like mediums and larges. I picked a small for my FC.
But for most people's situation you're right, larges are preferred.