I find it interesting that so many people are upset about the idea of player housing due to the fact that it would likely be instanced... moreover, they state that as if it's self-explanatory why that makes it bad.
-Scenarios are instanced (including the single person scenarios, few though they are)
-dungeons are instanced
-Raids are instanced
-All forms of PvP that people actually care about are instanced (world PvP is essentially dead most places, and most of what's left is just ganking, which only counts as PvP in the most barest technical sense)
-Your farm is instanced
If being instanced is a problem for player housing, why is it not a problem for anything else?
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@Rucati: Mount collections and other things people do for completion are typically invisible until shown off, why is it problematic in the case of Player Housing but not in other cases? You're also assuming that the only point of decorating is to show off your decorations to other people, rather than for personal enjoyment (not everyone has such poor self-esteem).