We are only a family of 4 and we have a 1675 sq ft house. It feels like the perfect size, almost too big for now. We have an extra room that we are using as the "game room" with the foosball table, video games and we might throw the pacman console table in there, too. It has a futon for guests. When the boys get older, they can have the choice of having their own rooms or keeping that one for playing in and having their friends over.
We have no desire for an office. We have a desk in our room that holds our printer and desktop, but really we just use our laptops wherever.
Our house is average size on our street (they all started around 1250 but most added on that 3rd bedroom and 2nd bath) and most have raised familes of 2-3 kids to adult hood, so I don't see why we can't.
We (DH & I) hope to remain satisfied with what we have rather than always wanting more. We'll see how it goes!
We do have to be make decisions about stuff and I like that we don't let it pile up. Even so, I feel like about 50% of what we have, we really don't need.
Sweetie Pies, DS 9/2004 & DS 4/2008