My experience with a prius in the north east was that it wasn't particularly bad in ice and snow and the few times I got caught in snowstorms it handled about as well as any front wheel drive car. I certainly wouldn't go out into a snowstorm with it if I had the choice, but thats true of almost any non-awd drive. The windshield defrosting situation was also a non issue for me.

Man I miss my prius, I sold it when gas was under $2...