Agree 100%. I think there will be a good market for a small, basic car of reasonable quality.
Even at $1.99/gallon, that Civic's 35 MPG is nice. I will admit there have been times I wished I had something to haul cargo in, but those have been comparatively rare.
Anyone who wants to spend more for a large sedan or an SUV or pickup truck is welcome to. But it's asinine to pretend that everyone needs a big vehicle.