I love the small houses, though...
Maybe you don't appreciate them, but I do; adding apartments as an option made it very easy for me to give up my house in exchange for something with significantly less expense, nor requires me to sign in all the time (I tend to come and go with breaks that last over a month). As much as I would like to see it, instanced housing is a pipe dream that I don't ever see happening, at least not any time soon. Apartments were easily the best choice out of plausible solutions, both in ease and functionality.
Instead of asking for complete reworks that would have to start from the ground up, we should be suggesting improvements to the existing system.