The problem is that so much of the current green hype is propaganda.
Despite our advances in technology and population growth, much of the environment is better now than for many years. The Thames is clean enough to support fish, the smogs of the 1950s and 60s are long gone. It’s not all doom and gloom on the environment front.
The Prius and the other hybrids are knee-jerk reactions to the global warming hype. Saddling western societies with green taxes and regulation (such as through the Waxman-Markey bill in the US Senate) will stifle profitability and thus research and development. It just doesn't work. Given time, we can come up with new technologies. There's no question in my mind about that. In 50 years' time, the cars we will be buying will be hugely different from today's vehicles.
Personally, I don't think the Prius is a step forward. Technologically speaking, it's the love child of a night’s passion between a Mondeo and a milk float.
The simplest answer to most energy problems lies in the invention of a cheap and simple way to store electricity. We don't have the answer yet, but it will come. The batteries of today are crude and, as we can see in the article, laden with environmental problems. Wind power is similarly daft as a substitute for base load, yet more and more are being built. Essentially for every windmill put in place you need an equivalent of its output in conventional generation so that it can be substituted during no wind (or high wind) days.
In the meantime, until new electricity storage solutions are developed, we need to refine the petrol/diesel engine. KERS is an interesting development.
If I were PM I would set manufacturers the following challenge: Develop a mass production, 4-seater vehicle which can cruise at 100mph, with a minimum range of 250 miles and minimum fuel consumption of 100mpg (equivalent). The winning company would get at least two years' exemption from all taxes. That would attract huge investment and massive R&D.
The Prius? Just a gimmick, I'm afraid.