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Thank you for the info! ^_^
Why would anyone who's using a desktop computer spend hundreds of dollars on a keyboard that has less functionality than a cheap (realistically free) office keyboard?

This comment explains the reasoning behind why mechanical keyboards are better than the e-waste keyboards that Dell, HP, etc. include for free. I suggest reading through the buying guide found in the subreddit's resources because it as a lot of information.
TLDR - customizability, durability, aesthetics, and typing feel are the big reasons why custom mechanical keyboards have so much popularity. The market has been rapidly expanding for the past 2-3 years, so it's a better time than ever to get your own.
Smaller keyboards are sometimes cheaper, and thanks to layers they offer the same functionality of their larger counterparts. Software such as VIA and QMK are powerful tools to help with this. The big reason why I like small keyboards is they are visually appealing and because (most of the time) I have no use for the numpad and/or home cluster. >

I can't view the link that was sent because it says the comment was deleted.
I appreciate the response. I guess for the entry level this makes a ton of sense, lowering the cost to get into the hobby is great. >

The post was deleted, but the comment is still there. I used the share button on the comment but I guess it just loads the post lol 
Look for the super huge comment by EMCoupling, it has a few awards. >

Found it! I appreciate the info, thank you. >

Don’t know if this has been said but people who use smaller layouts are opting to just use layers (having to move their hands less further) rather than using a tkl and having to move there hands far to press f12 >

Ah, alright. I appreciate the info. >

A 60% is the alphanumeric cluster and what you probably spend 90% of the time using on a full sized keyboard, at least if you are not a number cruncher.
Pretty much every 60% will have a function layer that gives access to at least a TKL in functionality.  The F row will be the number row.  WASD or IJKL will be the arrows.  Backspace will often be Delete.  Other navigation keys will be mapped somewhere.  Most will have multimedia keys as well.  Those that have multiple function layers will let you even have a numberpad on a layer or macros.
At this point you have smaller keyboard that does not need your hands moving as much.  And you can move your mouse closer (assuming a right handed mouse user which most people are).  Full size keyboard impose bad ergonomics.  Either you position the keyboard properly with the B key centered on your nose, or you tilt the keyboard or position it to the left.  So you end you up with either strain on your shoulder or your wrists. >

I personally love 65% or 60% the most. I type and work the fastest on this size. Using function button is much faster and easier for me using layer than reaching out the usual place. I even feel awkward now whenever I need to use full size. That being said, on my previous work where I needed to do many data input, I used separate numpad that I put on my left side instead.
So unlike the other comment said, at this point, I need a smaller keyboard to be more productive. Aesthetic more like a bonus point for me. However, I'm still not used to smaller than that. >

Interesting response, thanks for the comment. >

Smaller boards take up less space, use less parts and, most importantly, you have to move your fingers less to reach everything.
Layers make it possible. They also work on fullsize boards, but it's basically impossible to get used to them when there are physical keys for every action. >

Thanks for the info! >

At least for me, the reason that I like slightly smaller keyboards is because it gives me more mouse space when I'm playing games and in general. 40% is too little for me, but there are some 60% with arrow keys layouts that work well for me because I don't find myself using other keys that often. Also, I find that small keyboards like the 60% hhkb I have are more portable than you might expect. Even when I use larger boards, I basically never use the extra keys they give me, so there's no reason not to just save on desk space. Of course, if you use all that functionality a lot and you have a lot of desk space, then there's no reason to downsize. 
To add to that, I think people who go through the effort of making their own keyboard tend to prefer things that they can't just get in a cheap office keyboard. I think the fact that you can't really get a cheap 40% keyboard is why you see so many custom models - after all, this entire hobby is very niche. Seeing how small a keyboard you can use is a hobby in itself for some people. I've also heard arguments that having things on multiple function layers on keys that are close to where you rest your hands for typing is more ergonomic since you don't have to move your hand as much to hit certain things. For people who do want more functionality, there are things like separate numpads and macro pads you could use and position anywhere you want. >

I'm genuinely surprised your desk is small enough that the 5-10cm shorter keyboard makes a difference. Do you mind posting a picture of your setup? I've never felt very space constrained by my keyboard before, so this is very interesting to me. >

Alright! Thanks for the post! I feel I understand the usecase quite a bit better now. >

I use a 60% because it's more comfortable to me than bigger layouts like tkl or full size. The numbers on top are good enough and I don't ever use the F keys on top of those number keys. With a 60%, if I wanted to use the F keys I just have to press FN + one of the numbers on top to get them. I have my keyboard tilted so it's more comfortable and I don't think there is enough room for a bigger keyboard like a tkl or full sized one. I also think bigger keyboards like tkl or full sized ones look weird when titled.