In the architectural world, small buildings and tiny spaces are all the rage. From 50sf apartments in NY, to 4m wide slivers of multistory homes tucked between Tokyo towers, hypersensitive visual sense of aesthetics might very well be clouding good judgment in terms of sound sense and sound living: small spaces are prone to poor acoustics, noise, and have no sound privacy if these issues were not taken into consideration in design and not specifically built to avoid.
But, clever design such as that shown in the photo below, may help insulate private small spaces against unwanted noise and create a better sense of privacy. For example, if they added heavy curtains or another wall of closets in front of the bed (leaving walking space to access the bed), that will make the bed space even quieter and more private. Acoustic design also depends on the larger environment. If this closeted bed space is situated in a very large private bedroom then the curtain and extra layer of closet to provide sound insulation would not be necessary.