I started out in the OP's position: the car was going to be a hybrid for sure, but I was not married to one or the other. If anything, I had a preference for Honda because I dearly loved my 40 MPG '94 Honda Civic DX. I still think it is the best car I have ever owned, for the money I paid and the state of auto tech when bought.

This was back in 2001 or thereabouts. I checked out the HCH and the Prius I -- and disliked both. The Prius I looks like an Echo ('nuff said); the braking was jerky, and the MPG was not that much more than my DX. SULEV was a big plus, but I was willing to wait ..

But first we went to check out the HCH. Frankly, it was the first Honda I disliked. I am a small guy, and yet I felt cramped in the cabin. Both I and my wife felt that the craftsmanship was poor quality, and I pretty much hate the sedan design. My wife nixed the possibility on the spot, and I felt the same way. We did not even test drive it.

For me, the Prius II was love at first sight. I am not interested in showing my colors to people around me; I just think the design is beautiful. AT-PZEV, a promise of high MPG, superior safety as an option, and very interesting, forward thinking tech -- perfect. The $$ difference did not play an important part in my decision. I was more than willing to pay extra for the greenest car available, and since I keep my cars for 10 - 20 years, the cost difference in any case is minor.

If the HCH was a hatchback adn didn't feel crampy, I think I still would have walked away with the impression that it was not enough of an upgrade from my DX to make it worthwhile. If you are coming from a different car, you may feel differently.

IF I liked the current HCH, but wanted better enviro/motor performance, I would wait for the redesign if possible. Otherwise, Prius II all the way :-)

The real-world MPG data is interesting, but I am skeptical one can accept it as face value. For one, the Prius is a bigger, roomier, heavier car; so even if mileage is identical, Prius hybrid tech is superior. Second, I suspect that a larger fraction of the Prius are winter cars that have not been around a full year yet. When I look at Prius II mileage from owners that have had their cars for at least a year, I see 50 - 52 MPG. That group is still small, so certainly inconclusive, but I'll wager at end of summer the group MPG is about 50ish, vs the 46 for the HCH group.

Either car is a wonderful choice