It's interesting. I do agree with him on the large houses. It is simply amazing to me when a couple with two kids have a 5000sqft house. Regardless if they can afford it or not, do they really need that?
I grew up in a 1000sqft house and loved it. Still do. I now live in a 1900sqft house. It's still very small compared to my friends and other family members. Many of them would never dream of having their kids share a room. We do. Not only does it teach your kids how to get along and share but it prepares them for when they go to college. Plus, it teaches them about needs vs wants.
It's interesting how life can make us rethink things. I grew up with one bathroom for five people. I could not imagine going back to that. Going back to a house without a master bath. Sure, we could but now, having lived for 13 years with two bathrooms, it would be tough.
When we bought our current home, we could have bought a home twice as big but we like small. We also consider part of our retirement being having our home paid off.
Anyway, I do think that house is cool. I would want (note, not need) a bit more space but not much more. If I could have my childhood house again (which had a basement), I would downsize in a second.