It's an interesting and attractive option. Our house is pretty small anyway, but not that small!
There has been a countertrend lately too though. I don't know if it's reducing the number interested, but a lot of proponents have stepped away from the minimalist pursuit, claiming that it was just too much work to maintain such a tiny place. My wife has commented often that her big kitchens have been far easier to keep clean than small ones.
She remarked that one of the vloggers she follows that has pursued the tinyhouse and minimalist lifestyle admitted to her viewers that she was sick of it. She was giving up and moving back into a more normal sized house. However, she said she wouldn't trade the experience for anything and that she knew her life would be more efficient from now on because of it.
So, what will happen? Dunno. I could see it both ways. Is it catching on, or a passing fad?