I think the objects they've put into the housing system are fantastic (easily some of the best objects), but I still think the system itself needs to go instanced. Not "should" but needs (praying to Thal, hope them an easy time to do so - sure it'll be hard though).
To add on why, the insane (I mean insane) power you have from something like a Wild Star system (changing the sky box, ground space, etc, position and scale anyway you want, allowing you to make any dream idea) is great and that feature set is limited to only when you have your own pocket of space. One person could easily have a chocobo farm while the other a floating island with a cave system in it, I mean that literally happens (minus chocobos lol) in the Wild Star system (cities, underground networks, markets, underwater palace, in space, etc). Think when SE adds a new housing theme then everyone could use it - rather than a giant server shuffle and a bunch of error screens where some win and others not. Not only that they could add some very unique spaces (combination of skybox/ground), like the Azim step floating space, pirate island part of the alliance raid quest of ARR, pent house top of Ul'dah, Golden Saucer overlook, that beautiful flower garden part of one of the stormblood major boss scenes, etc. Furthermore if everyone had a house then we could see more interesting features in housing, including for Free Companies where if they don't have a house they're already significantly hobbled. SE can also hope to see more house item purchases from their shop (as everyone has a place to put those things).
Imo, and I know this wouldn't be easy but I think they need to do it already, but they should work in a new database for accounts that makes all mogshop purchases account bound - something they said they can't do that often due to limitations (that's bad imo). With this I think they should also add a glamour log, like WoW or other games where it holds pretty much every glamour in the game rather than 200/400. Then with this new account database system, give every single account a free housing space that is shared between their characters - much like a mog room in FFXI. When they add the server transfer system it wont matter much that you can have your characters from one server share a house with a character from another. A bit like FFXI but to a much greater level the area will be upgrade-able (floors, outside, etc- like a Wild Star housing zone). Don't destroy the current housing system but allow players to move all their items to this new system, including their apartment and FC room (those areas will then act as a teleport into your housing space). As it is account bound (there will only be one) it should offer decent space with many upgrades over time, and through that process be a very generous storage of your housing objects. Then if they want to make money they can let players buy extra housing instances (like retainers), in this way they might see role playing groups own large housing groups for their events, for shops, town squares, restaurants, etc (it will be very important that it's easy to visit your friend's houses, so long as the friend has put their house into the public directory).
Visually I think housing is fantastic. Mechanically it's one of my least favorites (even lord of the rings online which uses a system almost identical to FFXIV's has automatic growing wards so that no person is left without a house, but imo Wild Star system is the best system ever). But thankfully I love the game in general lol (or in other words I don't feel like quitting over it but I do think it has many problems that other MMOs seem to make non-issue).