In one of my years at a top 5 rated undergrad university I was in a ~100 sq. ft. windowless room as part of a 6 person suite with a decently large common room. That was a slightly unusual situation at my school (the windowless part, I mean), but remarkably like what is being proposed here. The overall building was quite a bit smaller and most of the rooms had windows and all that, but it really was almost the same from my perspective.

It was absolutely fantastic. I had a private space to sleep in and retreat to when necessary (a single is a major luxury for most undergrads!). I had a semi-private space shared with my suite-mates for work, socialization, etc. There were larger common spaces I could utilize around campus. It was my favorite housing situation I had while at school.

I could see it being a major problem for those who are highly socially reclusive, though.