Smaller cars have always been available, but people have shown a preference for bigger cars where they can sit higher up, even though it costs them more.
I hate to break it to you but something like a Rogue or HRV does circles around an Altima or Civic when it comes to daily flexibility and utility for a fairly paltry additional cost. It doesn't take a degree in rocket surgery to figure out why they fly off the shelves. For the average person they're a good combination of attributes.
A practical car is a station wagon, not an SUV, many of which have less storage space.
Please, cut the needless snark. People do buy vehicles for edge cases but the lack of smaller, practical vehicles is driven is large part by manufacturer profit.
I agree that there's a lot of stupidity going on when it comes to station wagons vs crossovers vs compact SUVs and the OEMs really do SUV-ify a lot of things that ought not to be.
The shape of these vehicles is fairly preordained by the nature of the fuel economy regulations and wind resistance and other regulations that apply equally to all of them. You're not gonna find "more space" in something like a Subaru Outback by squashing it on the vertical axis unless you stretch it in another dimension or find somewhere else to find space. Maybe you might be able to eek out a slightly better angle on the hatch or something but it ain't gonna be much. Fuel economy regulations make cars with thicc asses like the big sedans and station wagons of yesterday nonsensical.
The snark is not needless. It is tautologically impossible for the overwhelming majority of people do be "doing it wrong" on a matter that is in large part a subjective one of preference. If someone wants to assert that then I will talk down to them.
People buy these small SUVs left and right because they're seemingly the best option when it comes to well rounded boring A to B vehicles.