Still searching however, I am revising once again.

I was wondering if there is a game where it has:

Farming, Mining, Crafting and Housing
Monsters to kill when you get bored but the game isn't based on killing the monsters.
I don't really care about huge economics I would just like something fun that isn't like a big deal to be the most shiny knight with the largest weapon with the most spikes

Not sure about the "housing" part, but mabinogi sounds like a game you'd like =).

ultima online housing is realy customisable can ban from or friend people to your house .killing monsters is not needed but you will need to hit something to build your wepon skills up doesnt have to be a monster though u can just build it up hiting a guildmate.has everything you listed try uogamer:hybrid for a good community.

Well here's a list for you:

Text Based (and number one on the list)
Lands of Hope (link in my signiature)

has everything you mentioned you wanted.

Other:
Planeshift
Runescape (don't play it if you want to keep your trust in MMOs

Todays ultima online, you know the one EA games turned into an item based, gear based land for wusses, far from casual. Classic UO was casual, a true sandbox mmo. If you are going to play todays ultima online and pay 15 a month, you might as well just buy World of Warcraft.