Weather Channel aside (I guess they suck at predicting weather so like MTV and Rolling Stone, they are now focusing on "lifestyle"), I think this is a great idea. This allows young people to get out of their parents house and start living on their own somewhat affordably. It will allow divorced men a trendy place get back on their feet after yielding up their homes to the ex-wife. Or it could just be a place for an aging empty-nester couple to start a new life in the city after 20-30 years of high-stress living in the suburbs.
As I am in the latter group and our four-bedroom colonial in the suburbs is way to big for us, we are considering something like this (albeit a little roomier). All my books and music are digital. We both watch what little television we like on MacBook Pros using Netflix and Hulu so no need even for a big-screen television. Just a couch, a couple recliners, a soft bed and a minimal kitchen is all we really need as we eat out about 90% of the time anyhow.
So while the 135-sq ft is a bit small for me (maybe 300 sq ft will do), I really like the idea. No lawns to mow, no major housekeeping and repairs, etc.
I can understand people wanting to downsize, but these students haven’t given any consideration to the practicality and unintended consequences of the design, much like the proponents of “urban renewal” in the 1960s.