One thing with removing extras and compensation is how would SE judge what sufficient compensation is? There is the cost of the house. But what about decorations in it? Some of those may have been much more expensive in the past than they currently are. And what about labor time working on decorating? That's something SE can't give players back. For better or worse, SE decided to go with the grandfather step. Those they grandfathered in broke no rules before and SE has plugged the hole now. If they're getting around that restriction, by all means report. But if they're not breaking any of SE's current rules, where have they warranted a ban?

Does their decision suck for people now? Yes. But get mad at those responsible. And I'm going to agree with one point of Sauteed, that the focus should be on making housing not some limited commodity that has a set maximum, no matter if they keep increasing it or not, and instead become a system where everyone has access to it. Then this decision SE made will stop affecting other players.