I have a theory about one of the reasons why European cities and New York have such incredible street life. I believe it may have something to do with the size of their dwellings as well. The lack of affordable space means that many people live in very small surroundings, and they share those. No chance of having a dinner party for six people, most people just don't have the space - so a lot more entertaining happens outside the home. I think in N. America, proportionally, a lot more entertaining happens at home. I'll admit to not being sure about this, but it came on me when I read an article about a New Yorker doing TaiChi in a park, because she had no space in her apartment to do it, and I thought "that's why so much happens on the streets there" (or, it's one of the reasons, hardly the only one).
Anyways, a long way of saying, that now that the smalleest condos are 380 sq ft. we may be heading more this way ourselves.