People running Wasilla have their heads in the sand.  Tiny House is a new name for the idea of living in a small cabin. The idea was virtually invented in Alaska. As for the problem with it being "too cold" plenty of people in Fairbanks live in small cabins with no running water. It actually makes more sense because it is less space to heat. As for collections of for profit cabins, that can be dealt with zoning so you can't have more than one, or maybe two houses on a lot.