I live in a 2,000 sqft house with an attached garage and barely have room for that and an exercise bike. I definitely didn't have space in my last 750 sqft apartment.
You're right, we do - we don't have a lonely spartan lifestyle. If you ever live with a partner, have kids, entertain, have hobbies, work from home... floor space and storage come at a premium.
You can get rid of the television and coffee table and seating. We all have a choice. Your older self and partner and kids will thank you for being in good shape for longer.
Also, how much space, do you think it will take - "an exercise mat, dumbbell set and incline/decline foldable bench"?