Interesting note about floor space, NYC has a 400ft minimum which has been had demo projects under that limit, there are some current buildings going to 490 on average so its not like Westerners cannot live in smaller spaces, many do and for similar reasons as Tokyo, the rise in single living.
Indeed, and a large part of loving it comes from the low rent.
For a student in the city though, it is great to not have roommates and still be able to afford rent.
this 2016 article covers the NYC scene pretty well https://ny.curbed.com/2016/9/19/12970542/micro-housing-nyc-f...