"Little Demand For Hybrids" ?
Gansky, most of what you say is spot-on, but certainly there is lots of demand for hybrid cars. A couple of weeks ago an old friend of mine and I discussed the popularity of Toyota's Prius, so I decided to see how many I could count in a certain timeframe while driving around. I did this twice, counting each Prius I saw, whether on the road or parked. I'm sure I missed some due to having to pay attention to my driving or because parked cars were obscured by trucks. The first time, for 5 minutes, I counted 15, the second time, for 15 minutes, I counted 32. It seems like they've become the New Age VW Beetle because I see them everywhere from middle class areas to luxury neighborhoods.
I also see a fair number of Lexus and Honda hybrids, and I occasionally spot one of the Ford SUV hybrids, but none of them seem to generate the enthusiasm the Prius does. It's a real shame that American companies pretty much sat on their tails while Honda and Toyota took the lion's share of this market, as it could have increased the credibility of Detroit among people who normally won't look at an American product because most of them are so uneconomical. Ford's little SUV is progress and I commend them for building it, but an SUV is really a self-defeating place to start building a fuel-efficient car as the extra weights kills town economy and bad aerodynamics do the same for high-speed driving.
Now I wonder who will be first with a diesel hybrid - that has the potential for tremendous economy. Ford could engineer one using the bits from the little SUV hybrid and the European-spec diesel Focus (which they've never sold here), but I doubt they will bother. Honda recently introduced a diesel in Europe, and I wouldn't be surprised if they are the first with a diesel hybrid.