I'm all for instanced housing and would love to see that expanded on, but at the same time I also believe that we need to keep the auto-demolition (and I'm saying that as someone who owns a house). Maybe the timer can be tied to having an active sub or get extended to 90 days or more, but it absolutly needs to stay. The truth is that people do stop playing for one reason or another and that even when housing wont be as limited anymore as it is we'd end up with houses that are basically just... dead.
When my old FC bought their first house - back, when housing was first introduced and you had free pick where to live - we already noticed that some homes were bought by people who stopped playing alltogether, making their homes quite a sad sight and us always go "Man, we could have some neighbours here... if it wasnt for this 3-man-FC who stopped playing the game 5 months ago..."