Whatever the solution they might have chosen people would have complained anyway. This is just one solution maybe as good or bad as any other. Don't forget this game is free.
Anyway there is a bloke name Tondar, Tondaz, Tondaxy, etc (must have 50 toons) who is buying all the houses 1-199. So... there you go, not much improvement, however better that inactive houses I suppose. I still think the staff and the game are very good for the money we are paying.