[AndrewJ]

I'm a position #2 kinda guy myself.

I think that SUV's are generally an irresponsible, negative trend. As I see it "Green" SUV's will only serve to muddy the waters of more responsible transportation choices.

Lets consider that there are a segment of the public right now that are SUV owners or that aspire to be SUV owners in the future. A certain number of these people in the "SUV pool" will inevitably be concerned with the environmental and/or social impact of their SUV purchase. They are suffering from what psychologists call cognitive dissonance, trying to reconcile two diametrically opposed ideas inside their mind.
Idea 1 - I want an SUV
Idea 2 - I want to help the environment
Giving people the choice of buying a "green" SUV provides an immediate resolution to that market segments cognitive dissonance and assuring us of roadways that will continued to be dominated by light trucks and SUVs.

I look at that market segment "Green" SUV buyers as one would look at so-called "swing-voters" in an election.

To flog again an already-dead-and-much-beaten-horse one could compare this "Green SUV buyer" segment to people who voted for Ross Perot in the 1992 presidential election.
The Green SUV buyer is faced with a choice between two options he doesn't much like, Clinton (SUVs for our purposes) or Bush (sorry folks, here Bush will have to represent small efficient cars)
Since the Green SUV buyers will be casting their votes for Perot (the Hybrid SUV of this analogy) They will effectively be "stealing" votes away from the other two canditates.
As you may recall, Perot is alleged to have "stolen" enough votes away from Bush that Bill Clinton won the election for President.

This will at best effectively stall any real change, and at worst continue to enforce the "myth" of the wonderful SUV amongst the general public.

So there you have it, all two of my pennies.