I enjoy looking at things like this -- as a designer and artist, I always admire economy and efficiency of design.
At this point in my life, though, I have no desire to pare my living space down so drastically. We lived in approx. 800sf before buying our current home, and we made do with it, but it was not a space that was designed for efficient year-round living (it was a beach cottage, built for seasonal use 70 years ago), and it was a constant compromise for us to live and work in the space. Mind you, we were both self-employed, trying to work out of the small second bedroom which we made into an office -- hubs on the phone all the time, while I tried in vain to concentrate on my work. And we had my stepsons staying with us frequently, sleeping on inflatable beds in the living room, so I'd have to tiptoe over them in the morning to go make coffee and get ready for the day. There was no basement, and the attic is just adequate for a bit of storage and no more. Closets were tiny and hard to access. The kitchen was tiny and only one person could really cook in it at a time. Oh yeah, and only one small bathroom too. But we had a lovely yard and patio, and we could watch the sun rise over the Chesapeake Bay in the morning.
But what I'm getting at is that we lived in a small space, but it was not a small space that had been designed to work efficiently for a couple, much less a family. I think that makes a huge difference. I could design a 800sf space that would be much more livable than what we had, but we did not have the freedom to knock down walls and redesign that old house. We live in approx. 2500 sf now, and that may sound like a lot to many people, but when you consider two people working from home, a boomerang stepson who lived with us for a few years, and frequent guests, it makes sense *for us*.
One thing I came to realize, living in a small house, was that my introverted nature means I need some space where I can retreat and recharge without feeling like I have to "go to my room" like a punished child. This was not possible in our old home, but where we live now, we do have the ability to each do our own thing -- if the guys are over and want to play video games or music in the basement, great. I have the loft where I can go read quietly.
I think some of our responses to this are formed by our upbringings. My husband lived in a trailer as a child. He was living on a boat when we met. So he was ready for a bit more generous space when we were house shopping. The house that I grew up in is roughly the same size as the house I live in now, but it's a very different style (contemporary rather than colonial/traditional). When I worked as an interior designer, my boss and I theorized that the next generation of home buyers will be looking for smaller homes, because a lot of them grew up in McMansions, and as we reach adulthood, we tend to want something different from what we grew up with. These kids saw what it was like to have cavernous entryways and entire rooms of houses that never were used.
But anyway, I digress. As I said, I find this kind of design really fun and inspiring. I particularly love clever space-saving RV design, and I hope that someday my husband and I will spend a good bit of time traveling in such an environment. After all, I am the woman who spent 2+ months traveling around the US in a Prius, camping with a tiny teardrop trailer. But I will likely still want a home to return to, in which we can spread out a bit more.
ETA: One other thought. My husband and his sons are all over 6'5" tall. I wonder how much small spaces appeal to them! Trust me, big guys need big space. They need seating that is a little deeper, etc., which means furniture needs to be a little larger. I'll have to ask them what they think of small spaces. Both of the boys are now sharing small spaces with roommates, and I'm not so sure they love it.