Edit: I would also argue that having a place this small will spur people to be less hermit like. When you have a small place you tend to be outside of it except for when you are sleeping. You find friends that have larger places to "chill at" and you go out to parks, the library etc. -Anywhere but your small piece of shit apartment. You tend to stay in more when you have a nice, comfortable place. This is my experience.225 sqft is a commitment to solitude, and that's never good for communities.
I think that this may be taking it a bit far. I used to live in a 1 bedroom apartment because during that period of my career development, that's what I could afford. Eventually I got 2 bedrooms, eventually I rented a full home and eventually I bought one. Could be that the micro-apartment is just a rung on the ladder, right? It's not necessarily a declaration of perpetual solitude.