Cars are FWD for the most part because they were cheaper for the manufacturers to make and because they had more predictable (but not better) handling.
FWD is not less expensive. FWD is a lot more complex than a simple RWD setup (RWD does away with costly componants such as CV joints). FWD does not offer more predicatable handling either. However, FWD does (for all practical purposes) eliminate "oversteer". While oversteer is desireable in a small degree to a professional driver on a racetrack, it can be extremely dangerous for an inexperienced driver on a normal road. FWD creates understeer, which keeps the car from spinning in most instances. If you overcook it in a RWD car, you spin. If you overcook it in a FWD car, you side wide of your intended line, but you don't spin. FWD was adopted because of this, along with packaging efficiency. All other things being equal, a FWD car will have more interior room than a RWD car because there is no need for a channel for the main driveshaft.
ZV
EDIT:
Ornery, while I agree that hp/litre is often a misleading way of noting power, and that larger engines will always have an edge on smaller engines, the site you reference does have one glaring error.
A typical American pushrod V-8 has very good low RPM torque due to larger displacement and can make horsepower at both high AND low RPMs.
This is not true. While the larger engine is indeed making more power than the smaller engines even at higher RPMs, you will notice that there is a severe fall-off around 4,500 RPM, whereas the smaller engines don't have this fall-off. I'm pretty sure that is the V8s were able to rev to 8,000 RPM like the 1.8 litre engine, that the total HP/Torque output of the V8s at that RPM would not be significantly different than the output of the 1.8 litre 4-cyl. This is because the V8s are optimised for low-end power and not high end. Camshaft design and breathing ability has more to do with high- vs. low-end power than displacement.
I'll be the first to admit that if either of the V8s had a similar system to VTEC, there would not be anywhere near the power drop-off at high-RPM. I just wanted to point out that there is a significant fall-off of power at high RPMs in the V8s. This is NOT a flaw in their design though. It reflects a choice made by the engine designers who saw that low-end torque was more important in every day driving.