Very confused on the pen area

Getting a mini petite Goldendoodle who will likely be only a few pounds when we get him, so very small. All the pens I’m seems for inside seem to be extremely small, and with the addition of his crate inside of the pen I find it to be way too small. Is that how it should be?

Are we supposed to literally keep the puppy in the pen all the time and not roam around the house at all?