Obviously, our place is tiny...just a tidge over 600 square feet. I've noticed that square feet don't seem to matter to people who tend to live in lower-density, more affordable areas, but I've become acutely aware of them since moving to DC. When I first moved here, I lived in a 500 square foot efficiency that cost me $925 a month...I'll give folks who are unfamiliar with DC housing prices a chance to pick their jaws up off the floor. Seriously though, since that time, I have learned that I was getting a pretty great deal, and of course, that was 4 years ago, so prices are even higher now.
Living in a small space definitely has its advantages. For one, our carbon footprint is necessarily smaller simply by virtue of having a smaller space to light, heat, cool, etc. Additionally, it really keeps our accumulation of things in check. There's very little space to store anything, so we just don't accumulate it. When I buy new things, I give old ones away.