Can only speak for myself, but I'd decorate my house to the nines if I could. I have a medium, but it's too small and too limited for me to either take full advantage of the space or set up the rooms the way I want without some INCREDIBLY frustrating glitching and hours of microadjustments to get the walls and lofts exactly the way I want them. That's a side grievance with decorating in this game though :P
Even with relocate privileges it's gonna take something close to a miracle for me to snag a large if, say, Ishgard housing gets added. I care a heck of a lot more about my own decorating than I do about having neighbors that I'll almost never see and likely never talk to.