I don’t think it’s a matter of “should” rather than “what do consumers need out of a vehicle?” I think cars as small as they can make them while still allowing people to fit inside would probably be useful and welcomed by some commuters (especially if they were less expensive to purchase/fuel), but it depends on what people are using their cars for. Some people might only need a tiny car big enough to transport a single person. Some people need large vehicles for transporting goods and the like, so those vehicles need to remain on the market too.
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