The best way to explain this is by enlightening you with a very simple truth. No MMORPG has only one development team focused on one area of the game at any given time. I can assure you that the folks working on player housing are different than the folks investing time in other things such as item designs, new raids and/or dungeons, etc.
Also, there have been vanity items, pets & player housing in MMO games since as far back as I can remember. Hell, Ultima Online was released in 1997 and it has player housing. This is not a new thing by any means and it continues on into other MMORPG over the years because of one proven fact: it is popular among the majority of players.
Player housing was used as a main point selling feature of this game, so it's rather silly to buy into the game just to complain about something that you knew was going to be included. Not to mention that this content is nearly completed. Why on earth would they scrap the idea, especially when it's in no way interfering with your "dark & ominous" armor designs.