I don't judge. It really does depend on the circumstances. As a "bedroom only", a small coop/shelter does the trick. As a "home", nuh-uh, but it also depends on the size of the chooks.
They do all scrunch up together. My big girls have a big house, they don't use any of the space, they all scrunch up in a small fraction of it. If they were in a cold climate where they had to hang out inside, it would be different, they'd need that room. Over here, they are outdoors all the time (yes, really, all the time, there are very few days that you have to stay indoors), they could easily be accommodated in a small/er "bedroom" than they've got.
I had a small coop when I got my first chickens. 3xAustralorps. I felt they were too big for that coop, even just as a bedroom, but they seemed perfectly "happy". No plucking, no fighting, no nothing. They were let out into the backyard every day, and they marauded around and had a good time. They were adopted as "sisters" so they were already a team. I would never have considered introducing anyone new to that arrangement. That would have been a mistake.
I've seen the same thing on rabbit sites. People go "too small!" but there's a big difference between a bun sleeping in a cage and then having the run of a house the rest of the time, and some poor bun confined to a backyard hutch and being ignored.
We need to provide for the needs of our animals/pets. That can be done in different ways. There's no one thing that can be seized upon as showing that anyone isn't doing that, including the size of the house that chickens have. You have to take into account a lot of variables.
As an example, here in Australia, we have a LOT of room. People have sprawling houses (4 bedroom 2 bathrooms is considered a "family home"). Even units/apartments can have 2-3 bedrooms. Houses have back yards and gardens. Even a townhouse/unit will have a small courtyard or garden.
Here, we would say that you shouldn't get a dog at all unless you have a back yard. In Paris, people have dogs all over the place. They all live in apartments. But they take their dogs out every day, they can take their dogs everywhere (we can't take our dogs hardly anywhere, we have to leave them at home). Those French dogs aren't deprived. Their needs are met. They get their room and their running around at the park, not in their own back yard.
It's horses for courses. I don't judge unless there's something really wrong from all of the circumstances.
EDIT: Having said all that, pet suppliers shouldn't sell teeny weeny cupboards as sufficient for larger numbers than they really are. It isn't the inexperienced keepers' fault that they believe what they are told. They do the same with aquariums, telling people they can shove heaps of fish in tiny tanks. THAT is wrong, there should be better advice available when people are just starting out as to the real needs and requirements of a pet.