Yes, we could afford to have a lot more space that we personally own if we lived in a less dense area. But no, I don't miss it. I don't feel cooped up in a small space where I live right now. Nor did I feel cooped up living in a college dormitory, for that matter.
I do feel cooped up in a small space when I'm staying with friends and family who have palatial homes out in the suburbs for any length of time. My sense of how much space I have at my disposal changes drastically when I'm in an environment where the only space I'm allowed to use freely is space I'm personally owning or renting.
It hits my kids even worse. For them, one backyard, even a big one, is simply not enough room to run.