Your comparison is flawed (no offense). Did you get to look at the house and see if it fits your need? Did you get to have the house inspected? Did you receive a report on the inspection? Does that happen with Martial Art schools? Therein lies the difference between these [McDojo] contracts and a home purchase contract.
Also, realize that many of these contracts are designed to lock you in for X amount of time. So, if you get hurt and can't continue, guess what, you continue to pay. Do YOU want to pay for something you can't use? I don't.
If you signed a long term contract for Martial Arts training, that's your concern. I for one will never do that (again). I would be interested in seeing the contract you may have signed (sans the personal information of course).
How is this any different, really, than signing a lease, phone contract, or gym membership, or for that matter a 30 year mortgage? Why is it ok to agree to pay for a service for a year for these items, yet not in the Martial Arts?
A contract is a contract, both parties agreed to it. If the person who signed the contract isn't willing to live with the consequenses if they can't fulfill that contract or if they don't read the contract, then they shouldn't sign the contract in the first place. It's not the instructors fault if you choose not to go to class.
Do I like long term contracts? no, but they often provide additional benefits, like saving money over time.