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I watch some of those tiny house hunting show, and boy those pay way too much for the things. Much cheaper to buy a mobile home or RV. I don't understand it either, but apparently living small is in, so it's expensive. People are sheep always following the leader. You will never find my near the herd. I do my own thing.
The thing is that most of the actual tiny homes are mobile homes-they're on wheels to move when the fancy strikes. Over that 200 sf or so and and they say it's a "small home", not a tiny house. I would never have a home on wheels I had to leave in a hurricane/tornado. And you're right, the prices are insane. I always wondered where folks with hobbies like my quilting put their supplies in less than 200 sf. There is no way that shed is over 1100 sf, larger than my house. That must include the porches, a no-no in real estate listings in this state. That thing would fit in my livingroom.