I'll use the actual words and provide the details, so you can't (mistakenly) accuse me of twisting anything.
The exact example Yoshi-P cited was Ultima Online, and the exact wording we were provided was that it "had a system where your house would break down if you didn’t log in after a while in order to have you continue your subscription".
As far as I can see from the the information I can find online, Ultima Online does not require you to buy the plot, the only purchase you make is the house itself. With that in mind, the house in UO is analogous to the plot+house in FFXIV.
Going into the specifics:
UO: If you are unsubscribed for 90 days, your house will start to decay. After five days of decay, it will reach the IDOC condition, and will disappear 5-15 hours later.Condemned Houses
Your house will become condemned under the following conditions:
If your account becomes inactive (ie not paid for). In this case there is a 90 day grace period after which the house will begin to decay. If the account is reactivated before the final stages of decay the house will refresh at the following server up.
Houses which are condemned do not fall immediately, they go into a decay cycle having 6 stages and taking five days in total. These stages are:
1. Like New
2. Slightly Worn
3. Somewhat Worn
4. Fairly Worn
5. Greatly Worn
6. In Danger Of Collapsing
When a house reaches the IDOC stage house will become set to ‘private’ and all access will be removed. Provided it has no rental vendors, it will drop after 5, 10 or 15 hours, the house and all add ons will disappear.
FFXIV: If you don't access your house for 45 days (regardless of subscription status), your plot will be relinquished.
In other words, a house breaking down in UO (the system to which Yoshi-P was referring when he said they would not implement such a system) is effectively the same thing as relinquishing your land in FFXIV. In both cases, you no longer have the house or the land it was on, and must start over.