Well instanced housing with customizable gardens in a choice of beautiful settings can be quite aesthetically pleasing too, if it's designed to be.
Maybe but the point is more to show off and lets be honest, how many people would come to an instanced home anyway? The players already avoid going into other peoples houses as it is.
Which is precisely my point...
Players already avoid houses other than their own. The wards are empty instances where people just teleport in and out of their houses, coz there is no reason to traverse the ward other than to get to a caretaker or a MB... I've already owned a house on Hyperion, and tbt I only spoke to one of my neighbours while the other 6 houses around politely ignored eachother at the MB. When was the last time you walked across the ward to say "oooh, nice lawn!"...
So as aesthetically pleasing as they are they're also wasted resources... People want their houses to share with their friends, not with strangers you were forced to move next to because that was the available plot. The only steady group of visitors you'll get in a house is the FC members that own the house...
I rather have my own space in a secluded floating island than have to wait forever till someone quits the game, or gets evicted for not playing to snatch an overpriced plot to build a house that in the end only I and my close friends will care for.
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