Hacksaw,
Good point. Western society has become increasingly specialized in our jobs, industry and even our stuff. We value an item or a person doing one thing very well but seem to value multiple use less and less.
One of the tenets to a survival kit is to never pack anything with a single use (unless that "use" is fundamental, e.g. water, fire). One draw back to using one item for many tasks is it might never quite fit right. It will usually get the job done but it will take more effort. A good example of this is my leatherman...it is never the "correct" tool but it is handy and available and it works (most of the time). Ironically it takes more work to simplify but the peace of mind, more money in your pockets and less weight on your back usually makes it worth it.
The DW and I are moving into a 500 sqft apartment in a week and your topic has been on my mind quite frequently as well. Consolidation for less stuff and more space. I have a commuting bike and a nice road bike...I'm going to sell the commuter and enjoy my road bike...it may get scratched but I value utility over aesthetics these days. Also, to keep my camping gear (e.g. cook-sets) I may have to start using it on a daily basis to justify its space in the closet.

Good luck on your new philosophy! It has paid off for me so far but I still have a long way to go.
~Nemo