Interesting points of view. I couldn't live in one that small, however I do understand the want to live with little to no debt. That said, I live in a 1000 sf house (unfinished basement) with 2 car garage. I have a storage shed for my boat and other gear. We bought the house at the right price and I am happy with it. We have plenty of room and plan to stay here for awhile, no need for anything more. I have friends building that have 1.5-2 times invested and it doesn't make ANY sense to me.
But, like I said before, I would build a nice small SIPS home with solar and all the hippie goodies and be very happy....as long as I had a nice shop/garage LOL.
Best thing about the tiny house craze is it gets people thinking about living in smaller homes and with less stuff. That I think we could all benefit from a bit. But not down to 200 sq. ft.!