Bigger is Greener, or not?

As I tip toe from Spencer's room to our room, where Isla is sleeping in the bassinet, and the wood floors squeak (which echo’s through the baby monitors around the house), I think about the ultimate question.....is a bigger house better? Or just thinking the grass is greener on the other side? Our house is 1000 square feet- YIKES! I bet you didn't know they made houses that small in King County- wha wha. :-/
We have 3 bedrooms, 1 bath, 1 car garage, and a good sized yard for city living. Since Isla was on the way we moved Spencer into his big boy bedroom (my old office/craft room), girl-ized his old room for our new baby girl, magically fit our desk into our bedroom (it looks just like the bedroom in our first apartment together), squeezed some of my craft stuff into an armoire in the living room, and stuffed the rest into the attic. We are literally busting at the seams! I feel incredibly unorganized because everything in our house is so packed nothing feels like it has a permanent space.

With the market DOWN (really DOWN), and interest rates still low, of course, like everyone else, we are looking at houses. Especially since I'm a realtor, I am searching the MLS multiple times a day. Along with my searches, I ask myself, daily, if the grasser would REALLY be greener on the other side....or in other words, would a big house REALLY solve my feeling that I spend the days with a crazy toddler in a padded cell. The logistics to it all tell me that A) we live in Washington, where it rains 9 months out of the year, so B) indoor spaces on a grander scale have to improve the day to day activities....right? Am I wrong? I always feel like the best play dates and parties happen at the friends who have the really big house. Wouldn't everyday be that great?