In all seriousness though I think if my property was 6' wide my first move would be build a basement and sub-basement and sub-sub-basement. The ground floor would be for my motorcycles, kitchen on the 2nd floor, den in the basement, sleeping in the sub and storage in the sub-sub. You'd barely need any square footage, especially if you use ladders instead of stairs.
I guess you could say I'm thinking like a submarine designer?
It would also be ideal to ensure the basement is fully sealed (IE the moisture wrap they bury after you've had a leak can actually be laid before the foundation) which will help dramatically with the moisture in the basement levels.
I would imagine a house would become more vertical in narrower confines. I know my friend had a house that was only 12ft wide but long. The ground floor was kitchen and dining room, 2nd floor was a huge living room with a small bathroom, 3rd floor was 2 bedrooms, 4th floor (attic conversion) was the master bedroom with a huge en-suite bath.
I don't understand why you'd build a single story home on a <500sqft lot. A spiral staircase doesn't have a significant impact on square footage and a second or third level would dramatically increase the usable area rather than keep at the limit of ground level.
Unless you break a leg or ankle or even an arm.
Given real estate prices, it may make more sense to build on a small lot vertically, and then install a device if necessary, than to buy a bigger lot.
I agree that the Hong Kong solution is very cool (I love the hammock) (direct video link: http://www.youtube.com/watch?v=f-iFJ3ncIDo ).
My version is having to move the computer desk that's in front of the wardrobe, having a bunk bed that turns into a double bed, and moving the couch when I want to go to the bathroom (also very cramped with the toilet in the shower stall).
Of the houses depicted in the article, I liked "Penguin House" the best - the others are just not sunny enough - what's with modern architects' disdain of large windows and balconies...
I'm still amazed that the housing boom hasn't exploded in Uruguay (it's bizarre that housing is cheaper in most of the United States than in Montevideo - ok, NY and Silicon Valley excluded). The arcane government regulations and heavy taxing of for-profit development is really weighing us down (end rant).
Still, I might make use of small space design principle for my imaginary hacker mansion, if only to make use of it more efficiently and make my house feel larger than it really is.