Housing is like creating a map for your D&D campaign. The point for me is to create a roleplay setting.
I absolutely loathe gameplay added to housing. WoW did this with garrisons, and it was a huge flop.
Gameplay/combat buffs/etc in housing leads to less interactions between players. It leads to isolation in times when people are logging into an MMO to experience multiplayer combat.
BDO has combat buffs tied to housing. It's easily one of the most tedious hated things in the game. Players complain about the annoyance of having to make a pit stop before engaging in combat. Almost ready for that boss pull? Nope. Billy over there forgot his home buffs. Now everyone has to wait. I hope ESO never does BDO's mistakes.
Housing as a cosmetic-only option with minor things like crafting stations is perfection.
ESO's design for housing being cosmetic is perfection.