I would love to see a return to the higher prices for housing. I remember when it first came out, our smallish FC could only afford a Small plot after it had dropped in price from the timer. Then, months later, we upgraded to a medium. Eventually, we got a mansion but that was after the price reduction from SE (not the timer reduction).

I do not think private housing was a mistake. The mistakes I see were:
1. Lowering the price of housing to make it too accessible. It is luxury item and should remain that way. You put in the time, you get the reward. Just like everything else in this game that is rare.
2. Having no fair priced alternative to housing (partially fixed with apartments, more space / instance housing would be a true fix)
3. Allowing multiple players in a FC to purchase multiple houses (fixed as of 4.2)
4. Allowing multiple characters for the same service account to purchase houses (fixed as of 4.2)
5. Not allowing all characters for the same service account access to a private house (still unfixed)

FYI, I do not have a personal house nor any ambition to get one because I just do not care about housing glamour that much.
I fully participate in my FC housing projects and gardening but I pretty much never decorate anything.