Yea, that's were some middle ground would have to be found. It's pointless to try to find it without any numbers (active players per shard, houses per shard, etc.)
But for sure you could not please all. Lot's of people would be pissed about not having their exact spot again. Experience from other games however shows: They not all quit. Some quit, some move on. Some even recall starting fresh the best thing that ever happened to them
If people don't want, they can quit. If they don't get their favorite house, they can quit.
It's a tradeoff for those other group of people that quits over not seeing another player within their first 4 hours of gameplay. But those don't raise their voices here. They just move on..
You could ask the same questions as of now: What about current new players that will never have an Luna or Abyss house? Right, that's their problem.