The supposed goal of "Make America Great again" is to invoke that 50s era of American exceptionalism. So surely there's something there people miss.

And your theoretical implies we have choice in the matter. I'm sure many would in fact take a smaller home with less amenities over a modern home with cheap appliances. Not that I'd actually be given that choice given my family lineage, but the general living standard of the 50's was quite high. I doubt the act of AC and the lack of knowledge of abestos are the things that made housing skyrocket over the decades.