I agree with PLCProf...the problem is the small room or the space available for a model train layout. The venerable 4' x 8' eats up a lot of people space. So, around the room solves that.
The second problem with limited space is the track to scenery ratio.
Lastly, I have found (look at some small space designs) that the smaller layout requires a of lot switches to keep it interesting. This causes the budget shock.
But, haters, I don't think so. If you read or talk to someone that's hating on any model railroad get away from them. A model railroader does what they can with the resources available to them and that's good enough for me.