Why is this not the solution?

[Dewslam]

At the time, yes, but not so much these days.

That's also why the FC system needs to be locked down so it's harder to make the false FCs yet doesn't punish the legitimate ones - and that's been a very long running issue as it's got a bunch of RMT stuff tied into it (whether people want to admit it or not). Part of the problem here is that there's no auto-deletion failure state for the FC, among other things like a continual ownership check to see if the company is allowed to retain their house or if the FC house gets deleted.

The only solutions I could think of that would really stop fakey-FCs for alts and RMT shenanigans would be to have a time delay, mandatory member minimums or increase the rank needed to get plots; but even that is barely a bandaid fix honestly. A plot was bought the other night by an FC that was three days old with less than ten members and was already rank nine or ten. If you put a hard limit on how old an FC has to be to buy a plot, then people are just going to squat on FCs until it's old enough and cycle them out via transferring leadership. If you increase the amount of points needed to get ranks then that's punishing smaller FCs for the abuses of specific people. If you make it mandatory to have X number of members to purchase a plot then people are just going to fill it with alts. Again and again the core problem largely seems to be that they just need to allow for individual instanced housing or stop tying housing to mechanics that lock people out of content and rewards.