I've started considering it a "smell", if you will, when a recently-constructed single family home is in the range of 2800-3500 square feet. Almost inevitably, I look at more detailed pictures on the floor plan and layout and see all sorts of weird choices - a little "half office" right at the top of the stairs not even in its own room (just like, an empty space). Questionably shaped rooms that interact strangely with the roof. And so on.
Additionally, my personal preference is not even to have that much space - I'm nearly content with 1000sqft for a family of 3, what could I do with 3 times that much? - but I must confess that I do play the value-per-sqft game without meaning to when I'm comparing a 1500 sqft against a 2000 sqft home.
When we had 2 toddlers and an infant and went apartment searching, we kept getting shoehorned into 3 bedroom apartments because of the size of our family, but half the time, the apartments just traded space in the living room for an extra bedroom, which we didn't really need because the kids spent all of their time with us in the living room.
We often felt like we were being judged for not wanting more space for the kids, when in reality we were trying to find the biggest common space we could.
I would personally love a half-sized well-designed home with character and a unique architecture that uses its area well. But, you have to pay an arm an a leg for it. Unfortunately the budget market caters to buyers who limit their home criteria to "price per square foot". So instead we get giant borg cube houses built right up to the lot line.
Changing how we evaluate the quality of a house changes how they're built.