I'm gonna preface this by saying that I know that the Subcompact market is aimed at lower income people and that the cars are basic and simple to keep prices low. Now I'm gonna make a bold statement based on driving habits that I encounter day to day: People buy the biggest car with the biggest engine and use 1/10th of the power 98% of the time.

I've seen these nice 300 horsepower Lincolns doing 45 on a 55 mph highway where everyone else is doing 65-70. So did the owner need the 300 horsepower engine? No. They just wanted the comfortable interior. So let's look at the cheapest car on the market. The Mitsubishi Mirage.

This is a car that everybody loves to hate because it's so low powered. 79 horses is not a lot. That's about 19 more than some early Beetles had. Yet that seems to be an adequate amount for most drivers as they certainly aren't utilizing the 2-300 horsepower that their fullsized Cadillac flagship is producing. This car is roughly 12 thousand dollars and comes with bluetooth and automatic climate control. Why not add heated, power, leather seats. A heated steering wheel and a navigation system. Basically put all of the niceties of a luxury sedan into a Mirage/Cube/Versa/xB etc etc and market it as a low priced luxury yacht. It's all the power that most motorists need with all the luxury that they want for a lower price than that 60,000 dollar Volvo.

Plausible? Probably not.
Likely to happen? Never
Am I insane? Yes
Is it frustrating to be stuck behind a twin turbo S80 because the owners have no idea how much power that car can make and only bought it for the seats? Absolutely.