The debate of where to spend the money on alternative fuels can never be solved. 15 years ago or so, a large initiative started for electric powered cars. At the time, they were limited in range, not economical to produce, and not very powerful. With all the improvements over the last 15 years, they are still limited in range, not economical and not powerful. (Yes, there have been electric dragsters and such, but nothing feasible for mass production.)
Anyway, how I see it is that hybrids are real world tested alternatives to our mainstream engines. They cost a bit more, but that will be reduced when all manufacturers adopt it. Compare it to something like the automatic transmission. The first ones were not cheap to produce, but today they are the majority, and the overhead is factored into the cars' prices.
Fuel cells and other alternatives have yet to be proven. It would be a grand day to reduce our dependance on oil. But then we're dependent on coal for our hydrogen production. No matter how you slice it, anything made to run on a "fuel" has to have that fuel produced. Hybrids reduce the amount of fuel needed.
Diesels get great gas mileage, and hybrids increase efficiency. Imagine a diesel hybrid, even a larger diesel, like a straight six. High torque, high efficiency. You could stick a small diesel hybrid into a midsize car and get an easy 40-50 mpg rating. The only downfall is particulates. But no one is spending money to reduce diesel particulates....
So now that I've opened a can of worms about stuff, I'll go back to the origianl idea of this thread and say I'd like to see a Hybrid Element. Hybrids and the Element both appeal to the people that like the outdoors. (Even though the Element is selling outside its demographic.) I personally wouldn't mind spending a few grand more for a hybrid Element. And I think they could squeeze the fuel efficiency out to be more in the 30 mpg range. Plus if they make it for the Element, they have a competitor for the Ford Escape hybrid, since the Element's drivetrain is the same as the CRV's.