I am a big fan of lofts and frankly enjoy living in the heart of the city. There you can be surrounded by great restaurants, theaters, shopping, art galleries, and coffee shops. It's not all glamorous though. The tradeoff is always less space when you are in so close.
A smaller apartment or loft space creates additional challenges when decorating. Most of us have more stuff than we need and yet we want to cram it all into our home. Another challenge is having one large open space. As humans we like to have some break in the routine where we dwell. Being able to escape to a study, or a TV room, may be just the rest and relaxation needed to recharge the batteries. Further, you may have a roommate or child and need privacy even though a loft is small.
One tip for such challenges is using room dividers. There are free standing versions as well as sliding door versions that can create a room when you need one. Another handy idea is using sliding doors for pantries or closets. This frees up having a door that must swing outward to open and close. Often times, there is no room for the door to swing to. There are some very stylish room dividers on the market.
The model pictured here are from Raydoor. New York City designer Luke Siegel founded Raydoor to create panels that transmit light and provide dampening of sound.