So by your logic houses that aren't used for over a hour should also be reseted (they take only space anyway), and maybe items on the marketboard should be removed after an hour because yours is taking too long to sell.

SE removed the auto-log out because they have the numbers in hand and see there is no need for such thing anymore. As others have stated, the log-in waiting queue only is affected by people attempting log-in at the same time as you are, not those who are already online.