That observation is common but provably false. You can talk to millions of people around the world who genuinely want or own a small house because it simplifies their life. That's reality.

Obviously many people want 2000 square foot mansions. Especially in North America. But many others do not.

The interesting question is how big or small is good... For example, if you were living alone, would you want 750 square feet? 1000 square feet? Larger? And if so, what the fuck would you do with all the extra rooms? ... Seriously, I have no idea what I would do with more than one guest room. For me, kitchen + living room + 2 bedrooms is more than enough, and it's not like the bedrooms need to be very big.