Issue is more logistical from a business standpoint. Instanced housing still needs servers and storage to function which means they have to purchase and install additional hardware then configure it to operate with everything else that is already there. As for ideas to make an instanced housing area the ideas I had in the past were private islands in sea of clouds. house in a bubble underwater in like the ruby sea or something, or a personal airship home that you can anchor to what ever zone you want to call home.