I have it but nit used it yet! Will be in 11 days though. Yes you could go smaller but i like the space. You could have one bedroom for each child this way plus the living area which is a great size. We also have the enclosed canopy for extra space if needed. Downside is that it is a long tent and we had to pay extra at one site we have booked for.
It is really easy to put up and down - we tested this recently with just 2 of us.
Not sure about the lights out stuff but I will let you know how we get on after our first trip!