Player-created housing could both expand Hydlaa's neighborhoods and provide user-generated content, /and/ provide a place for storage of items. I have been playing A Tale in the Desert and one can create, modify, maintain, share, donate and destroy buildings in the game (provided you've learned the skills you need and have materials available of course). Obviously, it is no small task to create such a system, but it has several nice benefits.
* Irri votes for cozy Utlics on the plains around Ojaveda.
And art! ATitD has public sculpture too. I'd be pleased to see woodcarving become possible in PlaneShift. Gather wood, apply carving tools, possibly choose one model your skill level lets you attempt? Or you could get more involved and actually sculpt. ATitD's smithing system actually has you hammer on a 3D block of iron to try and achieve a good blade. The closer your result matches an ideal form, the higher its quality.
I am talking about ATitD a lot- it's not a bad place, but I am mostly playing it to explore the interesting approaches it has to some crafting and other systems. I've yet to find much in the way of Roleplaying going on there- PlaneShift seems to be #1 for that!