Tell me again why we can't have instanced housing?

[Shibi]

...areas that multiple players can enter (including housing) are limited by server capacity and bandwidth, which are in turn limited by cost, infrastructure, operational and supply chain issues. Though it isn't clear to me whether island sanctuaries will be open to multiple players or not...

It's always been said by yoshi that we can visit other people's islands.

The "we can't have instanced houses because servers/covid/supply chain" argument needs to be put to bed now.