I have a Jeep Cherokee. I consider it huge. It’s called a ‘compact SUV’. I considered a Honda Civic hatchback, but by the time I did they’d grown larger than one I drove and liked. May as well get the Jeep. I have a Prius, too. It’s not as tall as the Jeep, but it’s takes up as much floor space. Until the Jeep, I’d always driven small cars. To me, the Prius seems too big. My other cars are a '66 MGB roadster and a '63 Herald 1200 convertible.
I drive 200+ miles twice a week, so I see a lot of cars. I agree that monstrous vehicles like Escalades are not over-represented in this part of the U.S., but I still see a few. Most of the cars I see are ‘small’ (in the American sense) Japanese cars, lower-end American mid-sized cars, and large pick-up trucks. Many of the trucks are ‘work vehicles’ that have company names on them. Subaru cars seem to be extremely popular here. I see a lot of Toyota Yarises and Honda Fits and other cars whose size would not be out of place on European roads. Oh, I often see Smart Cars as well.
The reason American trucks tend to have a lot of power is that Americans like to tow their toys. Every driving day I see people towing travel-trailers, motorcycles, OHVs, and boats. The ‘working’ trucks are hauling all sorts of gear internally or on trailers. Because of the way Americans work and play, powerful trucks are often justified.
Now, the Herald is useless on our freeways. I talked to a guy last week who said he drives his 45 mph. I’ve had mine up to 70, and it was a struggle to get it there. 55 mph would be as fast as I’d like to drive it regularly. In many areas in this state the speed limit is 70, so you need a vehicle that will maintain that speed comfortably. This isn’t a problem with any new car I know of. I don’t know what motivates other people to buy the new cars they do. Small cars are inexpensive to buy, and that is undoubtedly a factor for many. They are efficient, which is a factor for others. Some people like small cars. (If Honda hadn’t super-sized their Civic, I’d have bought one instead of the Jeep.)
So I disagree that most Americans avoid small cars because they think they don’t have enough power to get out of their own way, or that they’re unsafe, or that they’re only ‘barely adequate’ for teenagers. The Chevy Sprint/Geo Metro/Suzuki Swift was a very popular car, even though it was very small and had a 1.0l three-cylinder engine. I still see several on the roads. Today many people opt for the BMW MINI or the Smart, or the Yaris or the Fit. I think that Americans would buy more Euro-sized cars if only there were more of them to buy.
But cars wasn’t really what I was thinking of when it comes to ‘luxury’. I was thinking more of overstated opulence and decadence like gold-plated toilets, which I stereotypically associate with American ideas of ‘luxury’.