It's not the solution for everyone. It is a solution for some of those who want a house and don't have especially close ties to a social circle within their existing community. My cousin's FC just made the decision they're going to move to one of the new NA worlds because their social circle is just their FC filled with friends from other games. They're not going to be losing anything outside of some progress on their workshop and now they know what they're doing (plus have items they can take with them to help), they'll regain that progress faster.
Yes, there are better solutions that SE could turn to. But as Shibi says, that doesn't do anyone any good right now when we have to work with the current system and any changes will take time before being implemented.
It's nice to think that if players scream loud enough that SE will change things but there's no guarantee that will happen.
To be correct, YoshiP did admit that it is a problem, especially for NA servers, back in one of the many Live Letters, interviews, etc that they did prior to Shadowbringers launch. They had plans to increase the number of wards per housing district then had to pull back on those plans when COVID hit.
Then when things started settling down, the massive WoW exodus hit and that switched it from not just being a problem with plots but with actual log-ins to the game and server capacity. The priority became new worlds, not just more houses, though more houses come with those new worlds to help relieve at least some of the demand.
Hopefully SE has now learned that the ward system does not work with a rapidly growing player base, that the instanced solution is needed. But it's still going to be a while before we see any results to that because new worlds for the overall increased population is still the priority.
But we know from WoW's past experience that it doesn't work well. Players already on a world tend to expect other players to make the move so they don't have to be bothered doing anything. That's why WoW eventually gave up on offering the free transfers off congested worlds to low population worlds.
I've got a strong feeling that when the new NA worlds finally open, hopefully November but whenever that ends up being, that SE is going to slap all the existing NA worlds with the Congested status forcing all new character creation to be on those new worlds. Data center travel takes care of the friends being able to play with friends. There's no trade restrictions so you can give any friends new to the game items and gil to help them out.



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