That's because the developers are pretty happy with the status quo. Just look at what we had to go through just to get extra bag space.
Basically, there is no reason for the current system except for the devs screwing it up. Which is fine. It happens. But it's just stubborness that keeps them from fixing it.
Instanced housing would be a win-win, great for both players AND SE. Just look at ESO. They implemented instanced housing in a great way. The houses show on the map, so they still feel like part of the world but are instanced so people don't lose out. There's multiple locations with different looks and sizes. And they made it so they could be bought with in game currency OR real money, giving them a fresh source of revenue. Considering how much SE loves the cash shop, you'd think this would be a no-brainer. Even if instanced housing required server upgrades, it would pay for itself in no time.
I just don't see where anyone thought the current housing system would be a good idea, especially when two people can buy up an entire district (which actually just happened... Kotaku has an article on it).
Then again, this is the same team that requires you to hold on to every piece of gear for glamour instead of having a window like every other MMO out there (and have stated they have no plans to implement one), so I'm not expecting much.



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