Well people with less money are more likely to feel the squeeze from the soaring gas prices, and they can't afford a Prius. I'm sure the used market is chock full of 1998 Suburbans. An Aveo, Kia, or Hyundai probably makes sense for those people.

Frankly, if Toyota is serious, they'll make the Corolla and maybe a Scion or two available with hybrid that people who are affected by the gas prices can afford. $26K+ for a nerdmobile is a specialty market. This is where I think Honda got things right with the Civic. The typical out the door price is significantly less, and it doesn't scream Greenpeace.

I can't imagine the Ford F-250 crowd moving to a Prius until gas gets REAL expensive. I mean, they have to look macho. Plus, Ford had to give them the truck below cost... so they can justify the higher gas by figuring that they saved $15k on a new full sized truck. And they get zero percent financing.

As far as I know though, hybrid sales are up... the Prius is down. So the article is crap.

I have mixed feelings about Toyota's hybrid decisions:
Camry - Great. Offer fuel economy and decent performance in a very popular, practical model. Kudos... best decision yet.
Prius - Neat, but it's too expensive and most people don't want a nerdmobile. You don't spend money to save money.
Lexus - What a complete waste... marketing it for maximum power. Follow your Camry model.
Entry level Toyota hybrid - doesn't exist... making their hybrids a specialty car for the middle class.