IMHO there is a future for small capacity, high output turbo'd petrol models. The 1.8 kompressor models (200, 230k etc) are a good example of this. Lower capacity engines are great for tootling around town and feel lighter and more free-revving but when you want/need a little more power it's just there waiting for you at the end of the pedal/rev counter. The fuel economy and lower emissions speak for themselves (see w202 C230k vs C240 or C280 as an example of where we were 10 years ago).