Does it actually hurt resale value? Anything with style won't be universally loved, but will make something more attractive and valuable to some. It certainly hasn't stopped fashion and design in other products. Is the solution for "This won't be to everyone's tastes" to make everything into something that nobody actually likes?
I am romantic, I would actually love to move into a house that carries the mannerisms, tics, and aesthetic of the previous inhabitants like a permanent ghost, and add mine on top. It feels like a world that was and will be without me, where I struggle to leave a trace by respecting and appreciating the traces of others. When I saw some minor graffiti from a child in the wardrobe of a house I rented, I loved it.
The house I bought has one room painted a much more interesting colour (sort of slate blue). I think it made the house much more attractive to us.
Some people think so. Then you have to paint your new house before moving in because it is so ugly.
The real estate industry (gag) says that because the whole goal is to turn housing into standard product that they can sell with the least work possible.
That's why you see houses for sale where they repainted everything grey, ripped out the mature landscaping and put down plastic and dyed wood chips.
Tastes change though. A look that was popular 15 years ago might appear garish or old fashioned today.
It can be harder to maintain. Repainting and maintaining a look like the Painted Ladies costs much more than vinyl siding.