I agree with everything you say about the economy, the subsidies, and that the Volt isn't the perfect size for everyone (which is why we have a Clarity).
Being a geezer, I went through the 1973 gas crisis when the price of oil quadrupled from $3 to $12/bbl. The effect on the economy was ugly. The 55-mph speed limit "solution" in 1974 was even uglier. I've always chosen small, fuel-efficient cars and believed the crisis would bring sanity to the automobile market. Nope. The Americans' desire for bigger and bigger cars won out and many are driving 15-mpg trucks and SUVs--they're just larger than the 15-mpg cars Detroit was selling in 1973.
Had lawmakers had backbone and foresight (requiring constituents with backbone and foresight), actions taken to properly solve the 1973 gas crisis could have prevented the 1979 gas crisis. Those actions would have mandated an orderly transition to fuel-efficient cars that would strengthen the US economy rather than making it always vulnerable to the next gas crisis.
In my impossibly idealistic scenario, the Volt would have been heralded as a major breakthrough in automotive history. Oh wait, it was heralded as a major breakthrough in automotive history. The problem was that the Volt was the answer to a question everyone was ignoring. Had the Volt been successful, there would now be Clarity-sized GM plug-in hybrids and a wide selection of US-built plug-in hybrid trucks and SUVs. (How brave is Honda for bringing out a Pilot PHEV in a country that buys 700-hp Jeeps?)
Gas prices in Canada are nearly $5/gallon as the cheap-oil bubble persists. It's too bad Honda made it so difficult to purchase a Clarity PHEV in Canada before Ontario voters decided to elect a Premier who promised to eliminate EV incentives in order to delay increased beer taxes.
None of what I'm saying,
@Claritydfw, is meant to contradict your many good points. However, I believe the country would be stronger if gas was realistically more expensive. If the government had managed things properly after the gas crises of the 70's, $5/gallon gas would not be an economy killer today. And the Volt would be a very popular car.