If they were "redoing it" yet we would still presumably have lots with houses on them... why would they need to remove what we have? Why not just transfer it to the new system? I don't see why they'd have to destroy my house to give me a house.

The problem is that no matter how they plan this stuff, they need room on data servers to hold housing data for X number of people. If the data servers are expanded to accommodate everyone, unless they were removing exteriors and giving everyone glorified inn rooms, it would be exactly the same as it is now, merely unlimited by the number of areas.

Your idea seems like just a way to kick some people, rustle jimmies, and continue the pointless bickering about the housing system.