There is instanced housing already... It's called apartments?

I mean really, they are essentially the mog houses from FFXI.... When I looked 30min after the servers were finally letting me log in and all the houses were gone, there were still tons of apartments. They were barely touched.

I'm not saying I don't get what you mean. You mean instanced housing like what other games like Rift have I assume. I think that would be fun and I don't say it is a bad idea. I just think the devs already gave us their answer when they released apartments however.