1. That removes all the joy of cooking for and hosting my guests. The point is to bring them into my home; to make them feel welcome and comfortable. Not to mention that picking up the tab for that many people would be prohibitively expensive.
2. That probably would work well in locations with a nice climate. In Texas, not so much. Maybe a couple of months out of the year. The 95ºF temperatures at 8pm don't bother me all that much because I grew up here, but a lot of people who recently moved here have a problem with it. Kind of a non-starter.
I really like the idea of tiny houses, but it's looking like, given my priorities, they're not for me.
2. If you want to cater for a bunch of people regularly you can do a lot with an accordion window & deck. Like this:
http://tinyhouseswoon.com/tiny-house-basics/
http://www.windorsystems.com/another-tiny-house-uses-win-dor...