I 100% agree that it’s detrimental to family dynamics to live in a too-large house.
I also think that the more “walkable” a community is, the better. Walkable communties tend to have smaller houses on smaler lots. Ideally, kids should be able to go places without having to be driven back and forth by their parents 100% of the time. All of the driving is putting a lot of stress on parents these days, which I think affects the kids negatively.