We've had Little People in our home since 2001 when Sebastian was about two.  Granted, they've been in the actic for a few years since but Madelyn is 2
1/2 now and loves Little People.  A few months ago we pulled Sebastian's old Little People Zoo and Airport out of the attic and now she has one in her room and the other in her play room.  The Airport just about went with us to Grandmother's house yesterday, but it's not the most convenient size for traveling with.  From what I see of the new Little People playsets, they are more compact now than they were in 2001.  

The Little People Learn About Town playset is compact, unfolds, has a carry handle, and is jam packed full of fun activities and little people.  Madelyn can take Sonya Lee and Eddie to the doctor, the pet
shop or the tree house to play.   There are 4 parts to the Little People Learn About Town with each part having two sides.

The Little People Learn About Town playset is available for about $45 at Amazon.com

Activities include a dentist & doctors office, colors pet shop, shapes pizza shop, numbers tree house, a sing a long traffic signal, a swing and a drop through slide, and a magnetic board and easy slide eraser in the schoolhouse.  The figures sit, stand and can even hold things in their hands and Eddie has his own pizza truck and there is a table and chairs set that Eddie and Sonya Lee can sit and relax in while Madelyn is busy playing with the apple tree and magnetic board.  When Madelyn is finished playing with her Little People Learn About Town playset, I put all of the pieces inside, fold it up and put it in her favorite toy spot.