Why are you acting like players would go into their houses and never leave to do other content? Most of the game takes place outside of housing. The world isn't going to die out. The same players going out into the world now will continue to go out into the world. The players who like hanging out in Limsa will continue to hang out in Limsa (I know a lot of the ones doing this on Coeurl already have houses, they just like AFKing in Limsa more).
Wards are dead already. There really is no significant difference between instanced housing and ward housing other than ward housing you're stuck looking at a sea of Paissa, Chocobo, Moogle and Gingerbread Houses with Namazu Effigies plastered around. Instanced housing you wouldn't have to look at that.
If you like chilling at your FC house with your FC mates, you'd still be able to do that with improved instanced housing. Like hosting a RP venue? You'd still be able to do that with improvedinstanced housing.
But at least every player would be able to get a house and no one would be blocked from participating in the content as they want to.
You can go and visit other player's instanced housing any time you want as well. RIFT's system has it done right. It's breaks it down into housing owned by you and your alts, owned by your friends, owned by your FC members, and owned by other players that can be found either through keyword search or their Like system. Find the housing you want to visit on the list and click the Enter button - you're right there.
Players want to create blacklists or whitelists for who can/can't enter their housing? It's there. Want to give other players the ability to change things around in your housing? You can enable it either by group category or whitelist.
Far better than wandering through a dead ward because everyone else with a house there is either offline or doing content elsewhere.
Who's saying they want to be completely alone?



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