Destroy ALL Housing! Replace with... (Please hear me out)

[Nezerius]

Feasible alternatives? "Hey, Square Enix, remember that housing system that's limited by your lack of server resources? I have a great idea! Scrap that and replace with even more resource extensive one!"

The instanced housing crusaders fail to realize that if SE had ability to provide every player with 600 furnishings slot instanced house we would not be having limited amount of wards anyway.

Afaik, the housing ward system was a design decision on SE's part, not a server limitation one in regard to giving everyone an instanced house. Something along the lines of liking the neighbourhood aspect it could create.
Housing plots weren't even available for purchase by individual players at the start, and were entirely exclusive to FCs. They likely didn't expect just how popular housing would become, once they did allow individual players to buy them. The result being the current shortage on a lot of servers.

Although I'm not really a fan of OP's way of simply scrapping the entire system.

[Azuri]

Afaik, the housing ward system was a design decision on SE's part, not a server limitation one in regard to giving everyone an instanced house. Something along the lines of liking the neighbourhood aspect it could create.
Housing plots weren't even available for purchase by individual players at the start, and were entirely exclusive to FCs. They likely didn't expect just how popular housing would become, once they did allow individual players to buy them. The result being the current shortage on a lot of servers.

Although I'm not really a fan of OP's way of simply scrapping the entire system.

Well, so why does SE simply not add more wards? Or open a new one every time one fills?

If it was that simple, we wouldn't be having this discussion.