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For investment into the homestead is why i use both slowly working on the island while i still improve my homestead with the newer items as they have all the same items just the workshops can only be built on the island while the character home only on the homestead.
Depending on what you use your homestead for it can just be an extension to it so you can hold more of whatever you are using it for. The part of it being a pain to lvl up the expansion size that you need lvl 3 of the stuff to make what is needed yes is a pain. The lvl of the island shouldn't really matter to much. Just get it to like 10 then if you want it to be higher yeah it is going to be grindy and require you to only have them make stuff on black smithing, tailoring and carpentry nothing else until you get to 50. At 50 take it all back and put it onto whatever you actually want.
For me? I am just using it instead of my homestead for the life skill tools as i have them in a line while my homestead for everything gathering while still having all the life skill tools but the newer ones of a mill, magic crafting stuff, and engineering stuff.
Like I said, I don't see the purpose of having the island that homestead already gives us--save a house we've had to build, and pay 500k every 30 days to be able to enter it. (Some of us even paid IRL money to max expand it!)
Because I have everything I need for gathering and crafting on my homestead, why make the island redundant? Why not let account characters access the same island, so we don't have to rinse and repeat with every. single. character. I would be more inclined to play with them my other characters rather than using them for storage, especially since it would make it easier to level up certain Life skills.
Why redundant places? So you can have more gathering spots or use 1 to decorate and the other for life skills.
The reason to not have all characters having all the same stuff is most likely so you use 3 of them to share resources with each other so you do not have to put everything into Tailoring, Blacksmithing and Carpentry until lvl 50. Though how to share is basically list on AH then stop the listing then go onto the other character and retrieve it for their island.
Unsure if that is an oversight of Nexon's but it is a reason to have 3 or more islands instead of just 1.
In my mind it is an attempt to try to get the higher end of who hoards most of the in game gold to use it on something instead of having people with billions of gold. It kind of worked but seems to have mostly not as how they got there is by selling stuff not by actually doing anything else just selling expensive like overly expensive stuff.
So a try at a gold sink which the homestead wasn't as they only had the house gated by 500k and nothing else as everything they did wouldn't be used by the majority of the game's player base.