I'm all for smaller more efficient cars, easier to drive too
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The main reason is manufacturers make more money off of larger cars. The cost of making cars doesn't vary that much, but larger cars can be sold for much more, so the profit margin is greater. That, and costs for parts tend to be greater, also.
A Toyota Pixis Mega/Honda N Van as a daily and a toy on the side, that's ideal for me and maybe it should be for Americans too. But I'm biased because I love driving
I would love to have smaller cars, but my average size Civic can’t see around the driving billboards that all the people are driving these days, increasing the danger and risk to myself and passenger(s).
I'd be happy enough with a Smart Fortwo style vehicle. I'd be more than happy with good public transportation and non-car dominated urban planning. I'd be over the moon for high speed rail lines covering the country.
Miata is always the answer!