"Everyone wants a large" wouldn't be an issue with instanced housing. (sigh)
Personally I find larges too big. Unless you have a huge, active FC, a lot of that space might be decorate but will rarely get used.
I went through this with my old FC (we had 60-something unique members, was about 90 if you included alts in the FC). They wanted a large so we got one in the 5.1 ward addition. They usually left the decorating to me so I'd ask them what type of spaces they wanted for use in the FC house. No answer. So I did the usual vendors, crafting stations, hot tubs, sitting areas, Gold Saucer game room, etc. to see what was getting used. Other than the vendors and crafting stations, they weren't using much of anything inside. One day, I found a member AFK dancing by the door and built an impromptu "stage" around them. That turned out to be very popular so I ended up adding a more permanent stage area that got a fair amount of use. Otherwise they preferred to play around outside, jumping games getting up on the roof, playing with the striking dummies, etc. Made me wish we had a big empty outdoor space with a much higher item limit because they would have enjoyed that more.
Any game tradeable currency system (so gil as opposed to things like tomestones and tribal currency that can't be traded) ends up broken in a MMO if the MMO lasts long enough. Developers need to make certain that new players are getting a good supply so they aren't at too much disadvantage compared to veteran players. At the same time, veteran players are also still getting those gil rewards yet generally have less need for the gil because players start acquiring ways to avoid or at least reduce the cost of the small gil sinks intended to slowly bleed gil from the game (teleports, repairs, melding, even the seller's market tax).
That's why games need a good variety of currency sinks. That's how to get part of that excess gil back out. Housing is the biggest gil sink in the game - and not all that effective if all a player can get is an apartment. It's really surprising that that SE doesn't make greater use of gil for cosmetic gear purchase. That would be a very effective gil sink for the game.