I agree that it's going to keep getting worse.
Hybrids are expensive and I wonder if the fuel savings counterbalance the higher purchase price; I've seen a few lifetime cost analyses and some look good but others barely break even.
A better alternative might be to get a fuel-sipping conventional car, like a Honda Fit or a Toyota Yaris. The Fit has more room, especially in the trunk. Basically anything that gets over 35-40 mpg is a good choice these days; I refuse to consider any car that gets less than 35 mpg. I currently drive a Toyota Matrix that has been getting about 37 mpg on the highway, which is okay. A Yaris would get about 40 mpg but I frequently have to haul a sound system and needed the extra space of a Matrix. I drove last weekend from Montréal to Boston (a 7 hour journey) on less than a tank of gas. Small fuel-efficient cars are much safer than they used to be, and are usually quite powerful and fun to drive. I test-drove a Yaris and it felt much more zippy and powerful than my brother's Jetta. When I lived in Vermont (five miles up a steep dirt road) I had a little 4WD Honda Civic hatchback that handled everything just fine, including axle-deep mud, and I even used it one winter to pull a Jeep Cherokee out of a ditch at the bottom of our hill.
Transportation expenses are also an area where living in a city makes things more affordable (which of course is not an option for everyone). I normally fill up my tank only once a month. I spend about $40/month on gas, plus $65 on a monthly bus/Metro pass, so about $105 total for all my transportation needs. Plus my bus and Metro passes are partly tax-deductible so in the end I'm spending less than $100/month for transportation. When I lived in the country I drove 20,000 miles a year; here in the city I've had my car for two years now and it only has 18,000 miles on it.
On the other hand, houses here in the city are more expensive (and much smaller) than houses in the country. I don't mind small (and in fact prefer it), but when I see what $300K will buy in the suburbs compared with what it'll buy here, it's amazing.
When I bought my CR-V in 2005, I would've much preferred a Matrix. But alas, I couldn't carry my brood (we have four kids, and I need to be able to tote at least three of them at a time, with none in the front seat). So now I'm stuck in the low to mid-20s for mpg. The environmental implications actually bother me more than the financial consequences.