how can a game that came out in 2004 have instanced housing but this game cannot?

[Vulcann]

simple. Because housing was not meant to be such a big thing. In Japan and most of the EU, it's still relatively untouched. Only the NA side is having a "crisis" and it effects a pretty small amount of players in the grand scheme of things.

Why put resources appeasing a minor group when its better suited to appeal to the masses? Y'know. The ones actually playing the game?

people who decorate houses DO play the game just because they don't play the way YOU do doesn't mean they don't matter. let me guess you are a raider and probably think things like storylines and crafting should be removed because they don't play like you do as well.