In smaller spaces, it's all about the details. Rather than lamenting what your house is lacking, maximize what you have. That's what we love about this recessed cloud bench.
From looking at the photo, it's hard to say whether it was an existing awkward space (under the stairs?) that they beautified or whether they carved out space into the wall intentionally to build the bench. Either way the result is fantastic. The cloud-shape of the nook comes from the paneling so it's easy to change out or remove.