DH and I live in a ~1200 square foot house, and it's just about perfect for our needs. We're fortunate to have a usable basement and a garage, so bike/ski/tool storage is manageable. We'd be in trouble otherwise

I wouldn't mind a slightly bigger kitchen and a second bathroom, but these are wants, not needs. (I dream of redoing the kitchen so that I can fit a dishwasher in, though!)