As an XMonad user with a 15.4" screen, I disagree. For example, when programming, I find it quite easy/fast to alt+1 to my browser for documentation, and alt+8 to go to my 8th workspace, where I usually have a couple terminals open with vim. Or sometimes I'm switching between those two and Gimp on workspace 6.
This doesn't really require XMonad, just having workspaces and quick shortcuts for moving through them is good enough. Most applications are easier to use when you give them the whole screen (at least smaller screens). But yeah, if you're using some sort of taskbar/dock to switch between applications with your mouse, it's probably easier to just have both open together.