To throw another though into the mix, many car makers do seem to allow their car models to grow over time (the Volkswagen Golf being an excellent example); however, there also seems to be a trend, by the same companies, to introduce smaller cars to fill the gap left by their established range getting porky. Nissan have back-filled the space left by the Micra, as it puts on middle-aged spread, with the Pixo. Are they increasing the size of their cars just to create space for more model lines, in hope of casting a larger customer fishing net?
As for small cars (including narrow ones), they are fine for city driving but awful on the open road and motorways. I am still waiting for a company to build a small car that doesn't get buffeted like a kite on the motorway and make you feel like a squashed tin can waiting to happen when you drive it on A and Fast-B roads.
Car ownership for many people, imho, follows the
MAD doctrine. If there was a size limited placed on all cars and commercial vehicles - capping the height, width and length, many people would be motivated to choose smaller transport; however, as a daily driver (and someone who does 20,000+ miles a year in all weathers and in various countries), I wouldn't be motivated to drive a micro car until all the lorries and other behemoths (SUVS, vans, large sedans, etc) are off the roads.