It's the sort of thing that might make people make their homes intentionally an actual eyesore (Dodo nests, cannons pointed at their snobbish neighbors, garish colors). Given that it's pixels and there isn't an homeowners association to complain to, it would make for a unpunishable gesture toward their snobbish neighbors.
I completely agree with the sentiment that it should be 1 personal house/account/server. It just makes sense if square is going to have this as a limited resource. Square should do something to correct this system that's been broken now since mid ARR.
(unrelated to anything you said in your post - general statement not directed at you)
As far as the homeowners themselves....yeah, the system let them do it, but that doesn't mean they should. People giving them grief? Tough. They chose to do something that any person would have found inadvisable and the court of public opinion is going to judge them.