Absolutely correct. The Q7 had a higher strength member which due to not having adequate cross tieing punched through the Fiat without sustaning any damage to itself, thus didn't absorb any impact force.
The NCap awards are not given for one vehicle against another, but a single vehicle hitting a deformable wall. To score a higher score the vehicle must score more points, i.e. be less damaging to the occupants.
I feel we should give due consideration to what are effectively large numbers of semi-commercial vehicles driving on our roads, for the safety of the masses, as opposed to the occupants of that vehicle.
Ncap results for Q7 and 500
http://www.euroncap.com/tests/audi_q7_2006/262.aspx
http://www.euroncap.com/tests/Fiat_500_2007/298.aspx
Interestingly the 500 is safer for an occupant when hiting a solid wall.