I disagree - he is actually totally right....making a bigger boat is actually wasteful because your just kicking the can down the road.

The reality is those databases can be pretty choked already without unlimited housing; and there is a large amount of empty houses or people who frankly have no idea what to do with a home if they ever get one - they will pay decorators millions of gil because they just want to have a nice house to rp in.

Houses need to have a upkeep cost so that people do not just neglect it.
Houses DO need to have rooms like FC houses; if your not a FC then each room has a exponential cost increase to add but you can keep adding - making it a massive gil sink.
All your alts need to have full rights to your house.
1 House per DC; if you choose to make your home a FC house then your private quarters is larger to compensate.
Reality is housing will essentially be a endless problem because there is infinite gil to buy it. The issue we are seeing is because players are not taking gil "out" of the system - this results in multi-billionaires who can easily buy out a ward if they have enough alts.
FC houses need to serve a real purpose - stuff like world transfer from FC houses and glamour dressers would be a good start.