That hous is still extremely small for what most people in the US would put in a full sized suburban lot: Nowadays a median build is 2300 square feet (213 square meters). It makes that 1600 square feet look very small. The hallways, the large space dedicated to a great room and just 2 bedrooms won't help.

You will find new houses that small, but typically when it's extremely high value land, so typically infill. And then chances are it's a multi story house that fits the lot to the limit.

Lindal has larger models, for those so inclined.

That said, the kit pictured will, if constructed, will have amenities & physical qualities that the similarly sized original Jacobs house has had to have retrofitted at great cost.

1600 square for two bed/two bath will feel large if well designed; many modern houses are not well designed for their size - usually one version of a given plan is the "optimal/designed" version, and you can keep adding things that make it frankly ridiculous, weird winding hallways, small rooms, etc.