Space or Upgrades

The house next door to us sold recently. We have watched it go from drywall stage to completely finished inside. The house is fairly small, something like 1300 square feet I think, but it is really cute. I remember when we walked through it, really not liking how the upstairs was just a small landing with 4 doors coming off of it. The master bedroom was really small too. The price of the house when we were looking was $13K less than the one we went for with 1800 square feet. I know we made the right choice, but every time I walk by our upstairs window I can see right into the house. They got all the upgrades, nice tall baseboards, 3-tone paint, upgraded carpet, dark wood floors. nice hand rails. I can't help but think about how cosy it must feel in there and wish we could have had a few more of those extra touches. I just kept thinking it was too small, that we would outgrow it quickly, oh and it doesn't have a yard at all. Sometimes I think it would have been worth it to sacrifice the space and spend more on finishings. I am learning that you can really make any space work, but then again, having more space when you need it is definitely nice.