... a small house is like a spiritual master. It teaches you to be disciplined, to minimize your possessions, to keep things clean and neat, to respect other people's needs for space. You get organized, living in a small house, or you go bananas. The choice is yours.
Although, as someone who grew up in one of these small homes, I can tell you that size is relative. I live in a 1300 sq ft home here in Sacramento now, and doesn't seem small at all - probably because I grew up in those Berkeley bungalows.
Kasturi also has some nice photographs of Berkeley bungalows, including her own.