Part of the thing is humans aren’t rats, so we can’t necessarily extrapolate from rat behavior to humans.
And another thing is space is 3-dimensional. If people have spacious apartments and access to good parks and public spaces, we don’t necessarily need as much private acreage.
And a final thing is different people have different preferences. Some people enjoy and prefer those tiny houses. Some people prefer a homestead with acreage. Some people are happy with a condo in a high-rise. Some people want a rowhouse with a little space for a garden in the back.
But – at least in North America – we make it literally illegal to build anything but the houses on the left on the vast majority of urban land.
If we’re going to talk about forcing people into living conditions they don’t want to be in, we should be talking about how we’re systematically shoving most people into sprawling, car-dependent suburbia.
I know that, growing up in suburbia, I felt trapped like in a cage because I couldn’t get anywhere without getting a ride from my parents. The internet was the only escape really.