Wait until the end of the lottery period to make your entry if you're worried about competition. That way you're not locked into anything until it would be too late to change regardless.
Allowing players to withdraw entries would lead to a lot of trolling by players who just want to mess with others. Better to make entries an irrevocable commitment. Someone might still be trolling but they would be limited to trolling that singular plot for that lottery.
People fear the large FC advantage too much. A FC might have a few wealthy players but are those wealthy players going to trust other members with very large amounts of their gil when such a trade will be honor system since SE won't get involved if someone decides to keep the gil for personal use? Don't forget that making an entry for a FC means not entering for a personal house and few people are going to give up their opportunity to secure their personal house for a FC they may not even belong to a few months later. Smaller FCs composed of close friends are going to be more dangerous competition than large FCs composed of people who barely know one another.
I've heard many saying that placards will be displaying the number of entries on a plot. I don't know whether this is true and I missed some information that SE released at some point.
It is extremely unlikely that SE would ever display the names of those who have entered because of harassment concerns.
Every ward will be getting a designation as a FC purchase ward or an individual purchase ward, not just those in Empyreum. One of the slides from the last live letter made this clear.
https://forum.square-enix.com/ffxiv/...803-03-2022%29 (scroll to the bottom for the housing related info)
I think some players are a bit confused by the new system. The FC/individual designations only affect who may attempt to purchase newly available plots within a ward. It does not affect existing owners in that ward. SE will also change the purchase designations on occasion so the wards stay what they consider a healthy mix of personal and FC to make the neighborhoods feel active, or to make sure that FCs are not having difficulty obtaining a house. Wards will still be mixed in ownership, though it will take Empyreum wards a while to reach that state.
Players seeking a personal house will no longer be competing against FCs seeking a house. They will only be competing against others trying to get a personal house. FCs will only be competing against FCs trying to get a house. FC advantage is going to be dependent on how many entries they can accumulate compared to other FCs entering.