Actually most buyer settle for the vehicle they can afford to buy and operate. The truth is buyers buy what they want and/or need. Ask any salesman what is the last question a buyer usually asked before he signs on the dotted line and he will tell you it is; "How much is my monthly payment?"
Look at the US sales figures in the real world. There are plenty of vehicles offered by domestics and imports that get great fuel mileage. Most of the midget cars are sold by import brands. What vehicles sell the best? NOT the imports, NOT the midget cars and NOT compact cars, from any manufacturer.
The three top selling vehicle in the US are not even cars, they are trucks. Obviously buyers in the US need or want trucks. Thee best selling car is not a midget or small car, it is the mid sized Camry. Even the best selling cars is out sold by the Ford F150, the best selling vehicle in the US for thirty years, at a rate around double that of the Camry. Although Toyota advertises they are the number one selling CAR brand in the US, GM actually sells more cars than Toyota, it is just that they do no have the same brand name on the grill. Like Toyota, Ford, Chrysler GMs best sellers after trucks are not their smallest cars but their midsize and larger cars.
Naturally buyers want the highest fuel mileage they can get in the size and type vehicle they choose to buy and they are willing to give up some power and performance to get it. Eight out of ten Camrys sold have only the 4cy engine. The Corolla 4cy actually performs better than the Camry, as well as getting better fuel mileage and sells for thousands less, but apparently Toyota buyers are choosing to buy the larger, safer, more expensive Camry they want and need.
mike