"And besides, smallness is not an inherent feature of hybrid technology."
This is true, and in fact hybrid tech would permit the automakers to build really BIG cars that still get great fuel economy. However, until they actually do so, I'm uninterested in hybrids just as I'm uninterested in conventionally-powered tin can cars. With people growing tired of SUV's with the associated high CoG and poor handling, perhaps the era of the fullsize car might make a comeback.
Unfortunately, the large number of women who can't drive anything bigger than a go-kart and the even larger number of kids who have never known anything better than a Honda Civic might stand in the way of a return of really well-designed road cars.
J_A_B