Why is this not the solution?

[Almagnus1]

It still failed even before because housing was so prohibitively nobody could afford them. Even if they only lowered the prices but never allowed Personals, people would just create dummy FCs like they do already. The neighborhood system was doomed to fail from the moment of its inception.

At the time, yes, but not so much these days.

That's also why the FC system needs to be locked down so it's harder to make the false FCs yet doesn't punish the legitimate ones - and that's been a very long running issue as it's got a bunch of RMT stuff tied into it (whether people want to admit it or not). Part of the problem here is that there's no auto-deletion failure state for the FC, among other things like a continual ownership check to see if the company is allowed to retain their house or if the FC house gets deleted.