Because SE created an awful housing system that is punishing a huge amount of players whether demolition is on or off.
Yes it is bad pr to do things as they are now but no matter what SE do it's bad pr. Why? Because their housing system is bad. Their housing system is literally bad pr.
However we have no way of knowing how many players are no longer paying for their sub. A lot of people who aren't logging in are overworked, not without a job or a home. Almost everyone I know in the medical field barely has time to watch a movie never mind play a mmo.
This is extremely unfair to say and it's clear you haven't thought about this much. What makes you think anyone negatively impacted by the pandemic has had 7 months to sort themselves out? I know people who lost their jobs due to covid just this month. I know others who lost them more than two months ago and cannot find any work. A friend of my family went to icu with covid only three days ago. He doesn't play FFXIV but if he did, well he certainly hasn't had seven months to sort out his life since covid had a huge negative impact on him.
These people certainly haven't had seven months to sort out their lives.