Agreed! Most notable homes are waaay too large for a limit of 700 items. I would much rather purchase a smaller home with a relatively higher item limit — why in the world would I want to pay more for space I would have to block off or leave much emptier than I would wish???

I think your suggestion could work for homes with areas already separated by doors, such as the Psijic Villa, Tel Galen, Wraithhome and others, but not open land for building, and here slots are needed all the more to both create building(s) and furnish them. Perhaps the limit could be raised specifically for small simple non-animated furnishings? Is nearly 2D spoon really the same system cost as a large 3D tree for instance? Another solution besides raising the item limit (which I do feel should at least be an at-your-own-risk option for many homes) would be more filled bookcases, cupboards, etc. as well as a LOT more structural furnishing elements, including perhaps some prebuilt rooms, towers, etc. that could be finished by themselves or connected and added on to to create customer structures in a variety of styles.