I compared it to the average car
You compared a hybrid cost, to the average cost of all passenger vehicles made. It just doesn't make sense.
Exactly. I think most people like a particular car for its attributes (size, etc.) and then look at options.
If I want a Toyota Highlander (for example) cause I have a largeish family and need to carry them and their stuff, then I am not going to choose a Prius.
What I will do is see how much more the hybrid Highlander costs and figure if I will put enough miles on the car to make the investment worth it.