Exactly.

Ferrers is arguing - at great length! - that there is just as much space in a small cottage as in a much larger house. He is plainly ridiculous. Elinor sees that there is no point trying to correct him or engage someone so foolish in reasonable conversation, but she is far too well-bred to mock or insult him. So she does the correct thing in this situation, and agrees with his nonsense until it blows over.

She's certainly not going to take his advice, and knock down a stately home to build a cottage.