The problem is that more and more the tiny house and so forth is no longer a choice, but a neccessity to survive. In places like Silicon Valley a normal job basicly forces you to either communte for hours every day or live in a tiny house just to survive. Looking at the rent increases and high home prices combined with high intrest rates, the cost of housing looks like it will grow in the coming years. That is not just a US problem, but the case in many parts of the developed world. In poorer countries it is a reality for even longer and for even more people.

That being said, if you have the choice, building up some wealth is certainly a good idea. With a bit of it and some good ideas, it becomes much easier to drop out a bit out of the capitalist hellscape and avoid the worst problems.