Most people would be surprised to find out how much I love living small. Less to clean, less to maintain, and lots of adventure.
One of the greatest struggles is finding personal space in our 40 foot converted school bus. The photo you are looking at is my son Bill, taking some quiet time up on his top bunk.
Because the roof is magnetic, he keeps his magnetic toys at an arms reach and spends many hours building from his bed. I have a curtain clipped up with magnets so he can make privacy, too.
His sister has a small space behind our shower where she has a fuzzy rug to Play on, a meditation pillow, and a hammock. She too has a privacy curtain for alone time.
If I am having a moment, need to rest, or want privacy, I take solace in the bottom bunk and pull the curtain for that area
Other than privacy, the next biggest issue is burning off energy. It's hard to run the kids' energy out in a small space, so our solution is lots of time outside. This isn't really different from when we lived in a farmhouse or apartment.
Because we cosleep, unschool, and attachment parent, the small space in many ways has made my life more simple. Now that we have fully "moved in" (it took 2.5 years to declutter and weed out enough to feel like we fit), our day to day mess is small and easy to contain.
Someday when I can afford a maid I will probably want to start upgrading to small destination homes in areas that I frequently visit (Galveston, Kansas City, etc...), but for now the 40 foot bus is working great. I love tiny house living and am not sure what on earth I would do with a bigger space right now!