As long as they're paying UAW wages, that ain't gonna happen. Isn't it amazing that Honda/VW/Toyota can turn out quality product at affordable prices, but the Big 3 serve up crap year after year? Take a look at the entry-level autos for the major manufacturers. The American efforts are absolute garbage in comparison to their foreign counterparts. That's where you build your customer loyalty.
The new college grad that buys a Honda Civic that lasts forever isn't going to upgrade to a T-Bird; they'll look for something in the Honda product line. By the same token, the poor kid who gets conned into buying a Ford Focus is going to be waiting for the day he can get out of it, and out of Ford altogether.
Perhaps the heart of the problem. A lot of the canceled models would have been successes if you knocked $10-15k off the price.