As I've noted in other threads, even if there was plenty of housing for everyone, I'd still support demolition timers. Why? Because people leave the game. It's a natural phenomenon with MMOs; FFXIV won't always hold every player's interest, and many who leave the game don't ever plan on coming back. When these folks leave houses behind, without a demolition timer those houses will be empty forever. I don't want to see wards full of abandoned houses that can never be occupied again.

That said, I disagree with the current system of requiring players to actually enter their house to maintain it. There are many circumstances that might prevent a player from getting online for extended periods of time, such as military deployment or extended hospitalization. Maintaining a subscription should be enough to maintain your house - it shows that you are still interested in the game, and will be back as soon as you are able.