In many ways, it's shameful today that we think that 60 or even 70mpg is somehow remarkable for a family car.
It certainly could be significantly higher. Public taste, laziness on the part of manufacturers and other things have all conspired to keep the bar set low on fuel economy.
In the US, there's one key reason why small cars don't sell (above and beyond the reasons I already listed), and that is that popular wisdom holds that you will die in a small car when someone in a large SUV or truck hits you. It's a self-fulfilling prophesy as people buy big cars because they don't feel safe in small ones, with the result that they become part of the "problem". Ultimately it's down to selfishness. Apparently people would rather kill someone else in an accident than risk being killed themselves.
It's idiotic, but this "wisdom" will only be unlearned slowly. Smaller cars are much safer now then they once were - safer than trucks and SUVs.
By way of a postscript, it's worth pointing out that today's safety and environmental regulations make it more difficult to make a car frugal, small and light than it was when Alec Issigonis designed the Mini. Also, aluminum construction (in smaller production cars such as the A2) remains nearly as rare and expensive as it was in the 50s.
True, and that's a shame, because brand image often matters than a car's actual merits. If the new Jetta is a turd, people will still buy it because the VW badge has cachet here that GM does not, at least in the realm of small cars.
I'm not going to stand up too much for GM, I've never held a high opinion of most of their products, but I have reasonably read good reviews of the Cruze and I hope they bring the diesel here.
The sedan body is the default in the US. Hatches and wagons are much rarer and therefore more interesting. In Europe it's really the other way around. When you're talking about mid-size or larger cars, sedans do generally have better proportions in my opinion (with a few exceptions - I like 5-Series wagon, and the 1990s Subaru Legacy wagon). Hatches look good on small cars though. The Focus, for example, looked stupid as a sedan but great as a hatch.
I do agree with you about the noise though - my Forester's rear suspension is sometimes very audible in the cabin, especially with the seats down. A few years before I bought my Forester, I used to mock it as the ugliest thing on the road, but I've gotten used to it and while it's never going to be attractive it does have a certain pleasing purposefulness in its proportions. Even though a lesbian couple I know call it my lesbian wagon.
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