It seem to me that Ted Kopple is in the right here. However 2 factors not addressed are:
o Is Ted Kopple's house required to be under 10,000 sq ft. My guess is no.
o In the covenant are basements counted as part of the total house size? Common sense and fairness would make them exempt
Whatever we think of him as a person, I too think that Koppel is in the right. The other points you make are, of course, subject to the wording of the covenants. I suspect that is why they are going to court.