I see what you are saying Nettle, but Garrisons were nothing like housing. I hated mine, too. No customisation of buildings, no choice regarding npcs, no actual house or even a bed for your character to sleep on, and so much busy-work connected to it, you could easily fill a play session there on your own, just doing 'chores'. Player choice was limited pretty much to,
'You can put your barn here or you can put it over there. And no, you can't change the look of the buidings.'
Horde were stuck with spikes and no roofs in the snow while Alliance had their pretty Disney-style fort in the forest. The farm in Pandaria was closer to instanced housing and the response to that was very positive IIRC.
In FFXIV wards were originally designed for FCs and that makes sense. I go to my personal house every day, but I rarely see anyone whereas our FC house usually has a few people inside using the crafting room and a bunch of people in the garden waiting for instances, training chocos etc. It's a nice social place to hang out and we often see members of other FCs at the market boards or bells.
If instanced housing was offered to individuals and the wards went back to being for FCs, I think we'd get much more community feeling than we will by sticking to the system we have. But instanced housing has to be attractive; it has to have advantages over what we have now. Apartments are a step in the right direction, but since they are basically a more expensive FC room, with the same limitations and no opportunity to garden, they aren't terribly popular.
If instanced housing offered people say, interesting locations (town house in Ishgard, desert island near Mist etc.), the opportunity to upgrade to a bigger house, more outdoor furniture and wasn't subject to the timer, I think quite a few of us would be tempted to swap to it from our personal houses.