Living like this is actually pretty common both at universities and as a young adult. You have private space, a shared kitchen/dining room, and the building has lounges and other public amenities.
Your room is for sleep, and possibly study, though there are other places on campus with fewer distractions. You can choose to eat and work together in groups in your dining room. You socialize away from your suite so you don't annoy your roommates.
The dorms that I used had all sorts of unpleasant features:
-- giant shared bathrooms had gang showers, or required you go go down 2 flights of stairs and along a hallway for 100 yards
-- shared larger rooms with multiple beds and desks, creating issues around differing schedules
-- no kitchens or cooking facilities
-- no food storage facilities, creating unsanitary conditions
etc.
As an example, a fairly common layout that I've seen is a 3-room quad -- two very small rooms with two bunk beds, two dressers and maybe a close adjoining a not particularly large 'common' room with 4 desks, perhaps a mini-fridge, and a beat-up couch.
Munger's vision is a palace compared to this.