I guess it could at least be an option for people who would prefer it. I do quite like sharing a dorm when staying in hostels on backpacking trips and stuff, as it's cool to get chatting to people you meet in your room. But in a place where I'm staying in longer term, my own room is more preferable tbh as it's nice to have my own private space I can go to whenever I feel like being alone, and I at least don't have to worry about anyone else's mess in my own room either. And then my student halls also has communal spaces like the kitchen and lounges that I will go to whenever I feel like chatting to people, so it's good to have that balance.