There must be some solid reason as to why mid-capacity batteries in a hybrid don't make economic sense for car companies.
Packaging is also a big downside. Fitting a 10-20 kW battery and a full combustion drivetrain takes a lot of space, so BEVs with packaging advantages over even pure ICE cars priced around the same number suddenly look a lot more attractive to the potential buyers who overlap a lot between PHEVs and BEVs.
To make an ICE efficient, you want to give it a big transmission with a lot of gears so it stays in peak efficiency RP, undersize it, and put a big turbocharger on. This produces a relatively heavy drivetrain that has lag when you put your foot down.
When you have an electric engine and battery, you can take the same small engine, but instead of a transmission, you just steal energy and put it in the battery when you don't need power and give it back instantly when you put your foot down. This removes almost all the weight and complexity of the transmission, keeps your engine at peak RPM, and gives you the responsiveness of an EV.
Plus it's not just the mechanicals. You still need a gas tank, exhaust, catalytic converter and all the other ancillaries that come with combustion. That all adds to the bill of materials, engineering and assembly complexity, and packaging constraints.
I think a lot of this comes from seeing PHEV as "worse EV" rather than "better ICE". Car manufacturers see their business as building ICEs and EVs as a weird distraction that you have to throw money into as basically a PR expense (although this has started to change in the last couple years). The engineering cost here is expensive but not especially unique since it could pretty easily apply to the entire ICE fleet. The fact that the Prius has existed for 25 years, but most cars sold today don't have regenerative braking is kind of crazy. It's not like OEMs haven't put a ton of engineering into ICEs, they just haven't considered hybrids as "real engineering".
Sadly it never made it to market.
BTW, the volt was advertised/promoted as a serial hybrid, which was a really interesting idea ... right up till it shipped and it wasn't.