Just remember my ideas. When this game is released, look around the landscape and imagine a small group of housing in certain locations with nothing in them. I'm assuming you've spent some time in WoW. I assume you remember going through some of the lands there, especially in the Barrens. Now, do you remember all of the dead spots with nothing in them? No landmarks, no trees, no mobs, nothing. Would it truly break immersion for some houses to be there instead of nothing? You don't have to create land for housing, you can do it out in the real world where developers ran out of ideas. I personally think it's less immersive in a MMO to not have housing. Where are the characters sleeping? Do we all lay down in the rats and cuddle together to stay warm?
You said it would fail. That's rather curious, since you do not know that it would. A housing system like that has never been tried. It's always free placement housing or instanced housing. Just like any other system in MMO's, why can't there be a splicing of the two styles? You don't have a crystal ball. And you need to remember that this is Elder Scrolls. It's not always supposed to be fair. I just don't see NOT including something simply because not everyone will have it. Instead, you just don't let anyone have it? How is that better? Keep in mind, this isn't some elitist achiever type who will be one of the first to get a housing spot. Chances are, I won't get a spot and I'll be the one renting out a room of a tavern or inn. I won't be complaining either.
And even though I don't personally like instanced districts, I would settle for that if they were varied enough and didn't look like a blank canvass with thousands of houses on top of it. Thnking LoTRO style.
Don't get me wrong, I like the idea personally - I just don't think enough players would consider a single house 'fair,' especially when purchasing the places comes down entirely to first-in-first-served. That's not the best model for a product that needs to be able to draw in new players year after year, when a feature is parceled out to the first subscribers. Also, how do you account for gamers' accounts going offline, etc? Losing your real estate because you let your subscription slip for a month or whatever would infuriate a lot of people.
Again, I'd like to have it, if it were done properly, but I just don't think it's feasible.
Also, with the instanced districts, I didn't mean one district has a few thousand houses. Imagine a place the size of, say, Whiterun, which houses about 40 or so people. When you enter, like any town it gives the loading screen, but inside its instanced to you and the 39 other players that were either randomly selected for your 'neighborhood.' When a different player walks in, they get 'their' neighborhood. So it's the same template of a district, and hundreds of people in each server occupy the same house essentially, but all in different instances of the district so you never see anyone going in to
your version of the house. Kind of like when different groups go into an instanced dungeon; you see the other group running ahead of you, but when you get inside they're not there, because they're in a separate instance of the same place, customized to them.