Re: economical because of congestion
Hybrids kick everything else's arse (even with the new stop/start systems that are becoming common) in congestion/stop start/school run/city driving/3 mile shopping runs - and that's probably the ENTIRE operation mode of at least 2/3 of the UK passenger car fleet.
On the open road they're not so wonderful because of the weight, but the electrics can give you a kick in the pants when it's needed for passing/hills, etc
How much open road driving do you do and how much tootling around town, to the shops, work, etc etc etc?
If it suits your lifestyle, buy it. If not, then don't. Wanking on about how your econobox gets 60-80mpg on the motorway is of no use if its real consumption is 30-40mpg in short haul commutes. Hybrids are aimed for that usage cycle - and they'll have lower engine maintenance costs because once the engine starts the computer systems won't turn it off until it's thoroughly warmed up and won't let you mistreat it when its cold.
That said: The batteries are a huge problem. A hell of a lot more R&D into chemical energy storage systems is required. Tossing waste heat overboard because the system can't regenerate fast enough on long hills or heavy braking is still an issue too - better/larger supercapacitor staging would likely help that but right now that would drive the cost up even further.
I wonder if an atkins/miller cycle is adaptable to diesel
How about using an exhaust turbogenerator/supercharger setup to catch as much as possible going out the pipe and provide more stick when it's really needed? (GM trialled using exhaust turbogenerators instead of belt driven generators in the 50s but decided that it was easier to stick with proven technology. The split system is currently being touted merely as a way of getting completely away from turbo lag but if you have it, you no longer need as many belt-driven accessories.)
(In other news a Wankel-based diesel is doing the rounds as a possible aeromotive/military transportengine. If that comes to civilian engines it could get interesting.)