Ikea sells a lot of things because they provide half-way decent things at half-way decent prices. The key point is what the guy said - with something like only 12 stores, they revolutionized UK interior design - it's not like Starbucks which puts up stores everywhere.
I'd be intrigued to live in one of these for three reasons indicated in the article. Firstly, they seem to be aware that the houses should have flexibility to be personalized. The problem with the terrace that I rent is that while it has a lot of rooms, they are actually "space-poor" in that they aren't very adaptable to different purposes.
Secondly, Ikea is building these rooms with high ceilings, which are often unlike the rabbit hutches in many English houses. It's easier to live in a small space if it has a high ceiling.
Also, they've put in many windows on different sides - again different from the dead walls prevalent here.