Here's a map picture of the Runescape after Asgarnia was released but before we had p2p. Many banks were missing, we had no mining guild, Edgeville was still called Ghost Town and so on.

One reason for removing the player owned houses before they were even really released was that Ultima Online (one of the biggest online multiplayer games back in then) was suffering from problems caused by their housing system: all the good places were full of houses and the houses were going for big bucks in eBay. With this kind of System Jagex should have extended their maps a lot every now and then, every place would have been full of lvl 26's with their newbish cottages and it would have been one major thing why the game's growth could be stopped.
When construction came, people were mad how expensive it is to train. Yea, that's right, they were mainly released to drain off some cash from the game and stop inflation a bit. However in 2001 people hoped them to be something totally different. The Wanderers (the one and only clan in RS history that can be said to be full of legends) for example were said to have gathered 1 million gp from their members to purchase the rumoured Falador castle. Everyone who played back in then knows that 1m gp in 2001 was a lot harder to gain than now starting a totally new character and then working with it to buy a blue phat.
When you look at it now, it was a good thing that we got our own houses a lot later and with a totally different concept than was planned. The rs market would be totally different with houses ruling it, we'd have 1 skill less and 1 more half-discontinued (depending how much Jagex would have expanded the area and number of poh's) more.
