I'd like to join this thread too, if I may. I'm embarassed to share that our house is 1840 sq ft with 4 small bedrooms and two living spaces. For me I still have "small house" challenges though. There are 3 issues.
First, we are a family of 4 and I'd like to have a third child someday. I know our house will easily fit a family of 5 with small children. I'm just worried about how it will feel when those 3 kiddos are adult-sized. I'm sure it's all a matter of perception but 5 adults feels so big to me. DH and I are both Introverts so it's important to us to have some seperate spaces available in our house for retreat.
My second issue is DH who is a PACKRAT. ARGH!!!!! It drives me absolutley crazy. We do make regular trips to the Goodwill and he could be worse but I could seriously purge our house of 1/3 our possessions tomorrow and easily. He's always worried about "just in case we might need something." I can't stand too much clutter so at least we have enough closets and a garage in which to stash all our unnecessary stuff.
Third issue is really hard to admit: Our house is half the size and 20 years older than literally all of our friends and aquaintences. I know that I shouldn't care and that all that matters is that we like the house. In fact, we lived in a newer but smaller house till recently and it's "newness" made it not feel like home to me. It felt like a blank slate and an apartment. I never felt settled there. Also I really dislike very open floor plans and high ceilings.
And the thing is, these friends with McMansions and granite countertops and crown molding don't necessarily have larger mortgages. Quite the opposite. They've just played our booming housing market very very well. I wish we had been aggressive enough to do the same. Not so we could have a bigger house, but instead so we could have a smaller mortgage on this one.
Anyway, we live in a fantastic established community where neighbors really get to know each other. The public schools are outstanding and DH's commute is as fast as it could reasonably be. We are centrally located to all our friends. Also we have a large yard (though a lot of street noise) and we live on a cul-de-sac.
Two other reasons we wanted a bigger house than some of you here have is that we have very frequent overnight guests and so we have a dedicated guestroom. Also DH works from home a lot, so he needs a dedicated workspace that is free of kid noise and sticky fingers.
Finally I strongly dislike TV and DH loves it. He grew up in front of one.
Anyway we have a daylight basement where he can watch to his heart's content and I don't have to listen to the drone. Neither are the kids exposed to it. You gotta do what you can, I guess.