SMOKEY, your car would have to use less than 40 HP and the engine be better than 50% efficient, so its max speed would be 40 mph, it would not go up a hill to save its life. As for fuel price dictating car design, fuel in europe is $5.00/gallon and they are not at the level you predict, close, but not quite there.
Its not the fuel price, its, not anything we have control over. The US public wants a car that is bigger than their neighbors so if they collide, the neighbor will die and not him. Second, we want cars that will pull a 12,000 pound trailer (just in case we need to tow away or nieghbors car from a crash site), go 0 to 60 in under 6 seconds (just in case we have to evade our neighbors car), have every electric gadget known to man (because our neighbor does, at a cost of fuel), AC to chill us to the bone (never see the neighbors window down, heck the AC drops my milage by 10% when I run it). Its not the fuel, its peoples perception of what they think they need.