One of the fundamental problems with trying to raise MPG has already been mentioned, the inherent safety issue of a super light car. Over the years SUVs and trucks have been getting heavier and higher off the ground, creating an arms race of safety through weight. These days not only do people see large cars as stylish, but also as being safer than other cars, after all, if you're in a crash, you want to be the winner, even if it comes at the cost of the other drivers life. The sad fact is that even the econoboxes of today0 are heavier than the gas sippers of the 80s, partially due to the safety factor. I also am very annoyed with the higher = better trend. My car is pretty low to the ground (eclipse), and I always get more than a bit unnerved when I look out my window and see a bumper at the level of my window. The doors on my car are pretty thick, and probably have some good structural support for absorbing a side impact, but that does me no good if your bumper comes through my window.
Now with that said I don't think it's that difficult to produce a car with good mileage and safety features using today's tech. Of the 4 cars in my family mine
a) is the lightest
b)has the smallest/least powerful engine
c) has the best acceleration
d)Has the best cornering performance
e)Gets the best mileage
IIRC my car was rated as having a mileage of 22/28 or something similar, but my experience over the past 4 years has been far closer to 28/34 or so, and sometimes it's at or above 36mpg highway. In fact, the only time I get below 30mpg on a tank is if I have 0 highway miles.
One excellent way of increasing the mileage of the average american car would be to change driving habits. For instance, I don't get the need to accelerate like a maniac from every stop. A fair amount of the time I see somebody next to me floor it off the line we end up side by side at the next red light. This brings me to my second issue, going full speed up to the light and slamming on the brakes at the last minute. I like to coast slowly up to the light when it's red, half of the time I don't need to come to a complete stop and don't need to burn extra fuel getting back up to speed, not to mention letting the car slow down on its own wears the brakes down less. Sadly I don't see the average American driving habit changing any time soon.