Bigger houses should be preferred for living

I got raid bad and half of the villagers and buildings were destroyed. Now i don’t get gold because people don’t live in nice houses that should pay higher taxes.
Please loose the restriction to live in nice house when the desirability drops a bit. It just does not make sense and makes me think if i need to actually destroy this house and build from scratch?

If there are 125 riders with rams, horses and catapults at t3 when i am barely getting resources for upgrade to t4, i don’t see a good way to survive it without a serious damage. Should i then call it The End - raiders win? I did not develop my town fast enough, so i deserved to be thrown half way back. Or should i be able to restore my village with repairs?

Sounds like a skill issue maybe?