For me it is about the location more so than the size. I had a house about that size on a nice wooded lot. It was in the foot hills of the Blue Ridge Mountains. It wasn't an ideal floor plan, but I loved living there.
We moved from there to the suburbs in the midwest. The house was slightly bigger and I loved the floorplan, but I hated living with my neighbors right on top of me, and no nature view. We moved again, this time to Florida and now I am back in the woods and I have my open floor plan. The house is smaller and I have no problem with that. As any realtor will tell, location, location, location!