I used to be an Audi fanboy for the real mechanical quattro AWD system of my late '90s sedan. Front, rear, and center differentials, always connected. But now, for fleet efficiency, basically everyone is going to some kind of clutch-based, disconnecting AWD on demand. So at this point, I feel like these hybrid/EV style drive axles are no different and quite likely to improve costs and reliability, since drive electronics should outlast clutch packs.
Edit: sorry, I missed the small and EV part.
"There are /many/ options for AWD vehicles without it being a crossover, but none of them are EVs."
There are optional for AWD EVs that are sedans (not sub compact though, but also not crossovers). Stuff like Benz EQE, EQS, etc. Audi makes some too.