I've seen occasional videos and concept drawings of small living spaces made more functional with fold-away furniture or reconfigurable room dividers. The thing that always strikes me about such concepts is how tidy the whole place needs to be, and how that compares to my house. If my kitchen table had to be bare to fold it away to get out the TV, well, we would have it forever folded away and would eat on the couch all the time. Or if the ground had to be clear to pull out the bed, we'd probably end up with a half-usable bed and a growing pile of life's detritus in the corner of the room. We just have a tendency for things - the stuff of life - to pile up in the corners, out of the way, and get forgotten for two or three years.
Mokalus of Borg
PS - It's not as bad as that sounds.
PPS - Except in some areas.