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I'm amazed at how many people feel so strongly that the Smart Car is really a dumb car. Does someone have to be wrong just so you can be right? Vitriol, people, does not lead to constructive discourse!
That said, I own a Smart Car. I love it. I cut my gas usage and bill in half, the car is 95% recyclable (according to SmartUSA), comfortably fits my 6'4" husband (more headroom than in the Lexus we replaced), is relatively solid compared to some of the small cars we compared it with (Hyundai, Zap, Yaris), and the ease of parking has been an absolute joy. It also costs half what a Prius would go for around here. No, it is not perfect (I like the Ipod comparison), but it is a good start.
Now for some tidbits: It can be quite terrifying in wind, or on a bad road; I have therefore resolved to stop going 80 mph, and try to stick to 65. The door is so big and the body so short that I frequently go shooting right past where the handle is and have to back myself up; it's an odd time/space sensation, and is very funny to people watching. I find that other drivers are so polite now, mostly because they want to look at the car; I tell myself not to get used to people encouraging me to have the right of way at 4 way stops, or letting me pull into a lane in front of them, because the novelty is bound to wear off eventually, and probably quite suddenly!