Lottery is a joke.

[Zedix]

As gil sink housing barely does anything...just at a less optimal place for him.

A player may earn millions in a week, but that isn't brand new currency. It takes months for a single player to generate a few million gil. Even when I go out to make money, I barely generate a few hundred thousand a week. Not to mention there is usually a house on the market every week, we can assume that's at least 156m a year on the LOW end. I don't quite understand where you are getting the 25% and the 10% nor how those numbers somehow leave 75%.

An open plot that might well end up taken...RMT gain more control over prime plot locations.

Let's assume youre right and the people who own homes are all out to spite the homeless (like I said before, I've literally never met anyone like this in my years playing this game) and are willing to waste all their gil just to prevent people from owning homes, that is a lot of gil removed from the economy. Yes it delays a vacant house from being filled. Unnecessarily though? I would say not, purchasing housing acts as a large gil sink, that alone is justification, all other gil sinks within the game can be circumvented in one fashion or another. (I expounded my original position in a post above responding to Amenara about the gil sink idea)

Someone who already owns a house...wide open again on relocation RMT.

You can decrease the wasted time by implementing the suggestion I mentioned before of just shortening the window from 1 week to 2-3 days, plenty of time to get what you want or have new housing circulate faster to ride out waiting on relocators. And no, it shouldnt be instant, having the lottery system is good, like you said to help prevent bots and RMT from running amok. There should be some friction and some chance in the lottery, but just with emphasis on optimum total outcome, not just filtering people into houses.

Except we already have instanced housing...housing and how they engage with it.

Instancing indoors was likely one of the only ways to get indoor housing to function on the engine of the game as a whole. Anything that SE implements costs server space, and SE has mentioned before that having individual instances for every single player would eat up large amounts of data on their current architecture. This game was built on the remnants of a game engine designed to run 'smoothly' on a PS3. They wanted housing to be designed this way for a reason, and I'm sure they will do more when it becomes a viable option that doesn't cannibalize the future prospects of the game. Not everyone can have everything they want, players or devs. The devs may not always be right and as players it is our job to tell them we are not pleased, but I also feel we should give possible "band-aid" solutions that may help the game in the short term until they come to agree with us.