Sunset recently profiled a family in Mill Valley, CA, who chose to downsize to a smaller home as well as live a zero-waste lifestyle. You should definitely read the article on Sunset. Take a look at this video as well to get a snapshot of the family's practices, and a pretty surreal image of how much garbage they produce in four months.
Would you be happier if you had this little clutter and garbage in your life? Do you think you could make the switch?