I live in Japan and live a mostly traditional lifestyle (although I work from home, which is super weird). Our furniture consists of: 1 kotatsu (basically a big coffee table with a heater attached to it), an end table that I use as a work desk, another end table that has a printer on it, a stool that I sit on when I work and a very small makeup table (that my wife never uses, but instead houses various junk ;-) ). We sit on the floor on zabuton (cushions) and sleep at night on futons (which are folded up and in the closed during the day). That is literally it.
It's incredible what a difference no furniture makes. It's very hard to entertain non-Japanese people, though... I've got some folding camping chairs in the closet, so it's very "rustic" at those times. It also took me a long time to get flexible enough to sit on the floor all the time! But it's good for your body.
I'm not going to suggest this is a solution for most people :-) I have been surprised at how much I enjoy it, though. I find it very comfortable and it's nice that the rooms are big, open and uncluttered (even though they are very small -- our entire apartment consists of 3 rooms, two of which are about 150 square feet and the other is about 120 square feet (that excludes the bathroom, toilet and entrance, so I guess the entire apartment is about 550 square feet?)
The major problem I have with such a small space is that I need more storage room (especially in the kitchen). I've lived in a house that was just a bit bigger than this (probably on the order of 700 square feet) and it was just perfect for me. Unfortunately, in our small town, there was literally nothing that big available when we were looking so we ended up with this.
When I lived in Canada, I had owned a huge house: something like 3000 square feet, with 3 bathrooms. My kitchen was probably half the size of the apartment I live in now :-). It was full of furniture: I had a sitting room with couches and chairs, a dining room with dining table, cabinets, etc, another living room with more couches and chairs, and 3 furnished bedrooms. I was single at the time and had to invite friends to come and live with me -- it was like living in a mansion. What a lot of work! I never had time to enjoy it.
It's weird how your idea of luxury can change :-) I literally can't even imagine living in that old house any more.