I have mixed feelings about this. On one hand, I'm a big fan of living modestly and I'd love to see more progress towards modest homes, in terms of both new technologies and new cultural norms (try to find a well-constructed 750 sq. ft. home for sale in a safe neighborhood).
On the other hand, I didn't see anything in the article about how this scales to relationships, marriages, and children. Considering how commonplace (and even economical!) various forms of cohabitation are, I wonder if this isn't another spherical cow experiment. Or am I missing the point?