As for that house, here they would have shoe horned another twenty or more onto that plot and I suspect it is to stop them falling over, a bit like cheap fully fitted kitchens where all the units combine to keep everything together.
We have the same issue really as with woodworking machines, we all complain about the quality but people still buy them and so nothing changes, same with newbuilds.
Fortunately I live where there is a 2 acre minimum lot requirement for residential homes. The county I live in is generally anti development and has blocked as much urban sprawl as possible. One county over in either direction will get you rows and rows of homes on land just big enough to build on.
Here the only real consideration is sqft. The biggest box per $ is the best value. Interior finishes and designs are very low on the list, typically its as cheap as possible. Moulding and millwork are a complete afterthought (if any thought was given)
My goal in this house is to make it have character. I've been all over the place with my own design aesthetic, but have generally stayed on a mix of colonial and victorian influences. I prefer straight Victorian but this house can't with the overall design. Eventually all the millwork in the entire house including the stairs and banister(s) will be replaced