Ultima Online still handles player housing better than most other games out there. For more recent MMORPGs there is ArcheAge that is offering player housing were you can place them everywhere in the world I think, never had a house while trying out the korean version. Sadly combat feels really outdated and put me off the game.
Wildstar is featuring instanced housing, so it's not as awesome as some people might think. Still a nice addition to the game.
On the other hand there's Everquest Next and Landmark further in the future even though I don't know if you can build houses in EQ Next like you can in Landmark or if you have to build them in the latter and then transfer them to Next. If you can build whatever you want, wherever you want in Next or transfer stuff over from Landmark, EQ Next would offer the best player housing yet.
About the Frostmourne smithing video, I was hoping for the good old fashioned way, the blade not being a "cutout". Still interesting and it made me remember how I was cutting shuriken out of steel back in my school days (the earlier ones). ^^