Size is relative. There are definitely cultural factors that influence what we consider small or large. For example, London has the London Housing Design guide which recommends a one bedroom flat for two people to be a minimum of 50 square metres. I don't think that’s palatial or excessive. It's still less than what many other European countries recommend (it’s 20% less than what Germany recommends which is 60 square metres for a one bed flat for two people [1])
In the article, it states that UK developer Pocket Living are building 38 square metre one-bed flats. 38 square metres is fine for one person, but not for two people in my opinion. These apartments may have high ceilings and floor-to-ceiling windows, but they are usually single-aspect and narrow in length (with the windows at the narrow end) in order to fit as many units into the available plot of land.
I'm not a fan of this micro apartment trend. Housing lasts for decades and future generations will have to take over and live in this micro-housing stock. Is this the housing legacy we should leave future generations?
[1] The Case for Space report (PDF) from the Royal Institute of British Architects (RIBA) published in September 2011: http://www.architecture.com/files/ribaholdings/policyandinte...