Reduce?

Today the girls and I went through their room again.  It seems as if they can't keep it clean and I hate mess!  Their room is less than half the size it was in Alabama, so with the double bed, pack n play, dresser and bookcase there is just a very small amount of room left for walking, let alone playing.  Plus they don't have a walk in closet to store all their toys.  So we are trying something radical.  We took more than half the toys they have and put them away.  The barbies are still out, the dolls (American girl size) and 2 dress ups for each girl.  That's it.  I know with the small amount of toys they will be able to keep the space clean....now to see if their imaginations will kick in even more (not to brag but my girls have pretty developed imaginations) and they won't miss the toys we put in the garage. 
I like the idea of going back to a time where kids have only one or two treasured toys and  nothing else.  For Kira's birthday the last couple of years we've taken her shopping to get a new church dress and made it an all day date.  I think this year we are going to try just doing fun things for birthday's and only giving one simple present.  I know this isn't the norm for our culture but I don't want my kids to grow up relying on stuff.  I want them to value relationships and memories. 
So what do you think?  Is it possible in today's society for kids to be happy with less or am I setting my kids up to be hoarders? 

Oh, and I know this post is rambly (yes, I just made up that word :) but Ella decided to get up early and nurse every 30 minutes last night so I'm not completely coherent.