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I don't think there would be an argument with 2 equally capable cars, one a hybrid and one a ICE only the hybrid will get better economy. Now say you take a Prius keep the same motor, remove all the electric parts, add a manual transmission you might end up better highway economy and less city but it will be a bit of a dog. Probably acceptable to most here wanting economy over power but not as snappy as a normal Prius. Now what if Toyota built that car from the factory and the cost was reduced $1000's of dollars. The extra money spent on the hybrid part may not deliver enough extra economy to justify the price. The environmental impact of the car without extra batteries would be better as well. Alas Toyota won't do that, and many Prius owners have proven they want a car that is instantly recognizable as a hybrid. Not having to look for a badge or even a giant decal on the side.
I haven't seen it mentioned but what about turbo diesel? Don't most turbo diesel's thermal efficiency surpass even the Atkins diet motors? Added cost on a TDI is similar to added cost of a hybrid system.
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