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I'd recommend doing some research before stating completely untrue facts.
PC Era has a staff team of about 25, and a continuous player base of 60-80.
25 staff approving the odd level from a few players every week is no hard work.
This being said, I'm aware they used to do it and they stopped for other reasons.
iEra has 30-40 staff (Roughly, I think a bit more though.).
They constantly have to sort through tons of player look uploads, (Trust me. I approved/declined 30+ uploads, to find another 30 waiting 5 minutes later during my short stint as a PR.)
This being said, custom house levels will be way more expensive, and very few players would have the knowledge of how to make a level. Or the knowledge of how to download the level editor for that matter.
So generously assuming that 10% of the iEra playerbase can submit their own levels, (200 Players = 200 Levels), iEra staff wouldn't be that hard-pressed to review and approve/deny levels waiting.
Therefore, the reason for this not being probable on iEra lies elsewhere, just like the reason for PC Era stopping it is something other than it being too hard.
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Doing research? I've played PC Era for over 10 years. Research enough?
(Also, people payed others to do levels for them, and its a lot less harder to make your own levels there with preloaded programs included

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Furthermore, I am closely involved with some staff there. And no matter if they claimed it was for other reasons (which they didn't)-- the truth is they were simply sick of uploading crap for people, period. They don't even get payed. =_=