Reading through all these posts highlights how diffferent each and everyone of us are. We all have different preferences.
Some don't understand why people need bigger houses, some enjoy having more room. Some think the bigger house is a waste and doesn't provide any additional happiness, some feel differently
I posted the spcs on my house earlier. My wife and I live mostly on the 3000 sq ft main floor of our Ranch with our master BR, my study, her study a Guest room, Kitchen and a great room (family/dinning/living room). It is where the kids and grand kids come for family dinners, sleep overs and to just hang out with the grandparents. This brings me great pleasure and I am much happier here than with our previous two story that had more footage acrosss the two floors (Not counting basements) and more individual and smaller rooms.
I do love the home theater in the basement. When my wife and I want to watch a show together or a movie or I want to watch sports, I go down there. If it is just me, the sound doesn't bother her in her study. My wife uses the Gym in the basement everyday to keep herself nimble and keep her knees working after two knee replacements.
The other selling point for me was the 4 car attached garage. Being able to keep my vehicles inside and have plenty of room to work on them makes me happy. I do most of the work on my two gas vehicles. I can afford to pay someone, just like tinkering. I just dropped the gas tank to replace the Evap Canister on my Land Cruiser. Plus its a great place for me to go out and enjoy a cigar during the winter.
One of the things I like about my house is there is no real straight standard rooms. Ceilings are vaulted, corners are curved, the hallway is arched the entire length. This is not a cookie cutter house, but I bought it at cookie cutter prices when the market dropped.
Could I live without those? Sure I could go back to the 1200 sq ft house we had when we first married. It was a cookie cutter house that wasn't special. Standard small rooms and every 3rd house was the same model. Everyhouse in my neighboorhood is unique and where built across 4 decades. Our house does make me happy. I have plenty to do in the yard to keep me busy or play with grandkids, I have my spaces and she has hers and we have the space we use together. It works for us and it is paid off. I installed Solar and Heatpumps to lower the energy costs. I haven't paid for electricity in 3 years. I have batteries when the grid goes down, which makes my wife very happy. I had room to build another 2 car garage to store some of my other toys. There are a couple of rooms in the basement I could drop with no big deal, but it is the basement so doesn't matter much. The main floor is perfect for us.
I understand how some feel a bigger house is a waste. Just like some may feel anything more than a chevy Malibu is a waste, or springing for a balcony vs inside cabin on a cruise is a waste, or getting the filet at perrys steakhouse vs Outback is a waste. Or going for Sam Adams vs the Schlitz Malt liquour
It is all about personal preference and what makes each of us happy and content. I for one would not be happy in a smaller house where I would lose my spaces or have a Closet so small, my clothes are in another room like they were in our first house. Even after 15 years, this is still my dream house and I have no wants to move.
Your Mileage May Vary (YMMV) meaning everyone is different