This is certainly true in parts of Andalucia (especially the old section of Grenada) but I think other parts of Spain are much more modern. Being a part of the EU has pretty much forced Spain to keep up with the rest of Europe. England also has small cramped housing in places but it also has big detached properties where you can lord it up.
I know a lot of British ex pats have moved there to live in secluded villas up in the hills. True they have had to do a lot of work to improve them and the infrastructure can be patchy but they love it there.
I think when you say 'you should not move to Spain' you are talking about a specific type of American.