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For one thing, you get a lot more legroom when sitting upright. And you can fit more/taller people in a given length car when the seating position is upright. It has more volume than a shorter car of the same length. As a tall person (I'm 6'-4") I am not able to sit comfortably in many cars much larger than my little Scion xA. My sister had a Legacy a while back, and I needed a shoehorn just to fit, and since it was a standard I don't think I could have driven it at all...
And yes, the visibility out of the car is helped when you see over the hoods of the SUV's/minivans/etc.
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