...SNIP...
But, I'm going to defend my laundry room.
Those of us without basements can appreciate having a small separate room to contain washer noise and to use as an inside clothes drying space. In my case it's also big enough to include a small table and chair for crafts that I can leave out and work on without tying up the dining table. I know some people who also install cabinets there for extra misc. like vases.
It all comes down to best use of space for you and your family's everyday needs.
Definitely - best use of space is paramount.
In our old house we only had one truly mini bathroom - in order to shower or use the bathroom you had to access it from the kitchen.
Talk about inconvenient.
The house was built in 1901 and previously only had a room big enough for a toilet, didn't even have a sink. Whoever "renovated" it turned the adjacent pantry along with the toilet room into a bathroom on the cheap.
I changed all that and switched entire rooms turning a spare bedroom into a kitchen etc. Anyway, my "laundry room" had vacation inspired scenery, a ceiling fan, a large, sunny window, and a linen closet.
Along with - a comfortable chair, a dressing area (it was right off the bedroom) a cool vanity-sink combo and a dedicated area, built-in between studs and very shallow, at eye level for my cosmetics, lotions, and potions.
I added an outdoor rug in an oriental rug pattern to hide the old kitchen tiles - it was a wonderfully functional space and actually relaxing to hang out in and get ready to go out while my gf sat in the comfy chair commenting on my outfit:) or critiquing whatever.
Not to mention it made it a bit faster to get ready for work in the morning.
... and yes, I had enough space to fold the towels and sheets right there and place them in the linen closet next to the dryer.
Space is whatever you decide it will be used for.
Dicey - good point about HGTV being inspirational for flippers who want to know what the house buying public can't do without. It used to be all beige and taupe - now it is grey:) Yuck!