When it comes to housing I think the best example to copy would be ESO actually. There is a wide variety of houses in all racial styles (plus other styles beyond them) and in many sizes, from rooms at an inn and small houses with a garden to cathedrals and keep, ancient ruins or extradimensional manors. Wide array of furnishings available in so many ways; many come from crafting and their plans can be acquired from all sorts of sources, others are added in vendors the world over, sometimes locked behind local achievements, there is a vendor with a rotating selection of luxury items, unique items acquired in instanced content and ofc busts and trophies for dungeon and raid bosses. Beyond that you can ofc place your pets and mounts but also can invite NPCs over; some of them are just there to clean and cook, other are famous NPCs paying you a visit (having unique dialogue that changes depending on which quests you've done) and still others can offer services (and those cost an arm and a leg). All housing is instanced but at the same time all housing also exists on the map; while you can just port to your house you can also literally walk in it from the front door. You can give permissions to specific people to visit you at any time. Guild masters often buy one of the largest houses as a guild house and you can then place profession stations so people can do their crafting there and even get some services. They add about ten new houses every year (two per patch which are quarterly plus about a couple more for specific events).
I honestly would copy most of it as is. With the token they can just have everything cost gold (will be the best gold sink the game ever has had); they don't really need to add any of this to the shop. I would perhaps have guild houses be a bit more unique.
What this needs first and foremost is a robust UI, especially when it comes to placing items. Blizzard probably would not give you the insane level of control other games do (e.g. I don't think they will only let you place items upright and always exactly on a flat surface, never sunk into a wall or floor).

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I think I'd rather have Loreth'Aran be the capital, although I can see some Horde getting pissy about that.
