IMO this is far too fundamental a change to the entire nature of the sport to be seriously considered. Also, I believe that the “space savings” are a false economy because to support the same number of players, you’d need more teams, which means more fields (just to serve the number of players we have currently). Given that the space required for a field at a tournament is considerably larger than the field itself, the necessary reduction in field size to make it economical would probably affect the player density too much, further impacting the fundamental mechanics of the game.
It’s definitely interesting as a thought experiment and I’d definitely be interested to see a tournament or series trying it out!