Apartments & FC rooms are the same (except for price) & offer nothing but minimal decoration & a place to technically hide away from- I'm pretty sure people use it for other reasons but if it were anything close to a cottage size (200 items & storage limit) but upgradable features, it wouldn't feel like such a bad option to default to when desperate (not saying everyone who has one is desperate)

Sure, people have many reasons as to why the housing in FFXIV seems inadequate- Because housing in many other games is fun & open to all. In some instances, it's almost immediately available & other games it takes a small grind but still, anyone can have it.
Where as in FFXIV, it was only ever intended for FC's & has such a limited system to begin with but with the current as is: It's the lack of features when it comes to decorating & how limited again, the house plots, apartments & FC rooms already are

If apartments were improved by giving them more item space & storage, upgradable sizes & a roommate/ tenant it would be a step in the right direction for once when it comes to housing in FFXIV
I'm not saying the lotto didn't do anything, but what it did do is frustrate the players even more because it has felt halfway thought out when fully executed ex: the amount of FC wards vs the private house wards