You also imply Xbox players will chose a dead DC to play on.Except relocation doesn't fill up empty smalls and mediums. It changes where the empty plots are located. It is new purchases that fill up the empty spaces.
There are far fewer players going immediately to a large than you think (especially since larges are rarely available). If you're looking at the entry counts on mediums and larges, very few of those are new owner bids. They're relocation bids. Most players are already doing what you suggest - getting any house they possibly can to start then entering to relocate when a plot they would like more becomes available. The lack of a full refund isn't holding them back because it's far too easy to make that gil back.
If you're thinking about how empty the wards are on Maduin, it's because Maduin has the lowest population among the NA worlds. There aren't enough level 50+ non-trial characters on Maduin yet to fill every available plot. Perhaps things will change after the Xbox beta starts (potentially end of next month) but more likely we won't see much difference until Dawntrail is about to release and players worried about release log in queues decide to transfer their characters.
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