Nope.
There's no substance to this claim. That's the problem. Sorry they lied to you. People like to make excuses for their favorite developers for mental exercise. If you look closely enough, though, you can see they have an image problem and they like to cut-corners. If you're even vaguely familiar with what people are doing on twitter, you'll know their ps3 excuse has run its course, so people need to come up with other totally invalid bullshit to make up to explain away the reason the game just has to suck and can't be improved no matter how hard they try; despite it's obtuse subscriber count. Consider the fact that they don't want people wearing cross-class items. It isn't because this is a Playstation issue, because [REDACTED] and it's fine. It's more than likely because if you've been around a bit, you'll notice they re-hash assets, and color swap them/make them dyable, and its how they artificially make it so they have to model less shit for players to wear, and release it as "new" when it was probably just an item another class used to wear. They hope you don't notice, but once you start to expand out to the other roles and get them to cap, you will, inevitably. Obviously this doesnt stop you from wanting to wear stuff other classes can because it looks nice, but hey, maybe next expac, right? By the way, if it seems like im digressing, I'm not. I'm just on topic to how mundane dozens of things are in FFXIV that they just absolutely refuse to fix; and it's relevant because more than half the time when people tell you they can't do it it just isn't true.
You're correct in your assessment that it's stupid that they can give everyone an island, but can't give us instanced housing. You occasionally had to attempt 2 or 3 times to enter your island during peak hours when the patch dropped because of how busy it was (hilariously, this also affected people trying to enter their homes. Just another clue that it's a lie.), just like they we're woefully unprepared when they released Endwalker and there were 2000 player queues. They're fine with making a ton of money, just not with putting it back into the game to make it more fun. They're content to let the community piss for territory, because community is what drives this game more than anything else at this point.
Infact, maybe thats why they wont take the plunge and just let people decorate a house of the size of their choosing. Maybe if they actually did log in and participate, or genuinely take feedback every now and then, they'd realize that its an absolute dumpster-fire that needs an extra feature to make it less of a maelstrom of player grief. Maybe they're scared because they're under the impression people actually see each other in the wards; and they think it'll be cringe and lose subscriber if you don't visit your neighbor's empty house once every 2 years wondering if they even actually exist.


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