Studio apartment with children???

My husband and I are both in our early twenties, and have never really thought about having children until recently because we just finished college last year and now are moving toward professional degrees.

My MIL has constantly harassed us about wanting us to have children, but the second we decided it was a good time for us she flipped the switch and wants us to just enjoy our twenties.

Maybe it's just because we're TTC at the moment and I'm a little sensitive about it, but now the MIL is saying that we should move into a studio apartment once we find a city to settle down at. I mean I'm sure a lot of couples have done well in a studio with children, but it just isn't for us. For the past two years we have been trying to manage the "tiny living" lifestyle that HGTV talks so highly about, but we're beyond over it. It drives me crazy that she would even mention that option to us right after we make the committee to TTC, and I just don't really understand her motives behind the whole studio apartment thing.

I'm sorry for the long rant, but will someone please tell me I'm not crazy for thinking this is ridiculous or explain to me what my MIL might be thinking? Also just any advice for dealing with MIL's would be great too.