I think it boils down to your answer #2 above, more than anything else. Frankly, I think automakers are doing an excellent job of walking the line between producing what the consumer wants and what the .gov will let them do. If the government regulators would get out of the way I think you'd see a lot more innovation from automakers in terms of capability and efficiency. I know that's the case with the light/medium duty diesel engines that are made for pickups so I'd guess it's probably the case for the rest of the industry.

I don't see efficient cars as a threat to "big oil" and I doubt "big oil" sees them as a threat to their profits, either. Every ounce of oil they can extract and refine will be sold and they know it. The whole process to design, manufacture, distribute and sell efficient cars will take years and years. In the meantime there are plenty of other vehicles on the road that will need fuel.

People like to talk about "big oil" companies as if they're the enemy. They're not. They also aren't the reason gas prices are high. The government at various levels and just the cost of purchasing the oil that's fresh out of the ground are responsible for the bulk of the cost. Profits to oil companies probably account for the smallest percentage of the price of a gallon of gas.

Americans like their cars and trucks. Period.