Nobody is forced into these apartments. They’re definitely the exception - not the rule. And for a similar price, you could get an apartment for double the size if you only add (quite) a bit of time to your commute.
I think it’s great that people have this choice. Especially for people who don’t spend much time at home anyway, what’s the issue with providing a cheaper option? And on the flip side, if places needed to be larger, it’ll drive up the cost for everyone.