The utility room upstairs is actually intended to be a maximum of 7 sqm as well, equipped with a washing machine, possibly a dryer, and a cabinet for towels, bed linens, etc. We find it practical to be able to wash the laundry directly upstairs where the clothes are stored.
Basically, I can say from my own experience that it is super convenient and practical to be able to wash and dry the laundry right where most of the dirty laundry accumulates. Of course, where exactly this place is depends on the individual habits and living circumstances of a household. Do you mainly use a dryer or do you love hanging freshly washed laundry outside? Does the majority of the dirty laundry come from worn work or gardening clothes, outdoor activities, or (small) children?
Depending on the answer to these questions, the possibly ideal placement of the washing machine and dryer (if you use one) basically results.
I can only report from my own experience: rental apartment with a laundry and drying room in the basement vs. washing machine + dryer in the family bathroom (in our case on the ground floor), where most of the dirty laundry first accumulates --> super convenient that we no longer have to feel like running thousands of stairs but everything more or less accumulates in the same spot.
If I were to build new and accordingly create a room program to take to a planner/architect, one requirement would be that the washing machine and dryer are again on the same level as the family bathroom (even if I would prefer a separate room, but our house doesn’t allow for that).
Long story short: I personally like the idea described above a lot, and I think that if this plan is realized as intended in the floor plan drafts, you will be very satisfied with it.