You say there wasn't really any gas shortage, and that cars would get as efficient as they need to be on their own based on the market. That's nice. Real or not, the corporate line when I was there was that you couldn't get there from here. Not "we don't need to, because there really isn't a shortage". But, "we can't do it". That's my comment on that point. They were wrong.
As far as emissions go, they want a level playing field. They sure as hell weren't going to go put convertors on the cars unless all manufacturers had to, because most people aren't going to pay for it, even if they think it's a good thing. But the fact is that people elected the people who wrote those laws, because they could see the pollution. You say I'm incorrect? Whatever. Keep readin' them libertarian theory books.
Fact is, the air in western cities looks better now than it did then, with more people. I have no idea how it is in Chicago, haven't been there in a few years. Does California need an emissions board? No. It needs 10 million fewer people. "Welcome to California, Now Go Home" - bumpersticker circa 1986. Didn't work out. The people who showed up were the dregs of the earth, just the kind of folks the Dims love. So they got to stay.
By the way, what's your experience in the auto/truck/oil biz? I've worked in all three. I saw all this crap first hand in the '70s. How 'bout you? Read it in Reason magazine one day?
Pull the troops out of the mid east and let the price go to whatever it will. Then we'll see how far "custom, perception and taste" go in fuel efficiency decisions. Personally I'm all for it. I was totally against the Gulf War. I couldn't care less what Saddam Hussein does to the House of Saud. I'm all for letting him do it. Then we can build vehicles that don't need their juice, which should be no real problem technically. And they can drink their goddamn oil. It isn't worth one American life. Unless of course you'd like to volunteer to die for access to "cheap" oil.
By the way, remember when Bush 41 told us it wasn't about oil? Nobody says that now. It's good to come clean. Cleanses the soul.