Now I can go back and listen to his words on the islands:

What he said is more in line with (paraphrasing)

A lot of people have wanted to customise their islands and make them look more unique. He always considered that as more landmarks were added with each patch people would be able to differentiate their islands more, placement, and new objects, some landmarks with flowers for example. But people want more.

He still doesn't want islands to replace housing, he still sees apartments and houses as a different thing to the island, which he envisaged as an uninhabited place to let the minions run free. He is interested in allowing this greater differentiation to happen, but "it is very difficult to do" (which is a standard yoshi-ism), and he can't give indication of a target patch right now.

"I think it would be nice if we could enjoy the differentiation even more, so I'd appreciate it if you could please continue to give us that feedback"

And that's likely worthwhile to do, keep saying what you want to help guide his direction.