I think hybrids don't make sense, when viewed from a larger perspective. Hybrids take a tremendous amount more energy to build (I'm including the energy costs of producing the materials used in the vehicle as well as the assembly process), have a much more complex and potentially polluting end-of-life/recycling path. They also are heavy consumers of materials that are in short supply from sources that employ less than optimal environmental practices (e.g. cobalt for the Li-P or Li ion batteries, mostly mined in the Congo; neodymium for the motor/generator, mined in China, with the supply being manipulated by the Chinese government).
Hybrids also don't make sense to me from a practicality/efficiency perspective, either. Take a look at the story on the previous generation Audi A2:
http://www.audiworld.com/news/01/A2TDI/content.shtml
This amazing 1.2L turbodiesel vehicle had better performance than today's Prius, and delivered better than 3 L/100 km (over 78 mpg) in the EC drive cycle. The optimal efficient and overall low emission, low energy vehicle design seems to be a combination of lightweight, high-strength construction (extensive use of aluminum alloy), modern safe vehicle design (airbags, belt tighteners, stability control, active headrests), high efficiency / low emission 1.2L turbodiesels (with low-sulfur diesel and particulate traps), and roomy sedan/hatchback design.
IIRC, there's a quote in the most recent R&T from a BMW engineer who stated that gasoline vehicles in the EU are a non-factor in sales when compared with diesel vehicles.
Since we can't seem to get vehicles like the old A2 here in the US, when I went out shopping to replace my M3 with a commute car, I ended up with a Honda Fit Sport. Good overall mileage (~32 mpg in commute use for me, 40+ on the highway), cheap price, excellent features and high degree of utility, and it's also a lot of fun to drive. I also looked at the Honda Civic Hybrid, and found it to be expensive (in comparison), toady-looking, and dull to drive. The new Honda Insight Hybrid (sort of a Fit-like Hybrid) looks to be a significant improvement (cheaper, nicer, may even be fun to drive), but I'd rather have seen a Fit with a 1.2L turbodiesel version instead - which is what will probably be marketed in the EU, eventually.
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