I'll say it again, GM was dumb for showing their hand with this several years before production was even feasible. Now everyone knows whats coming in 2010, 2011, 2012, or whenever the Volt arrives, and they can adjust accordingly. Maybe Honda speeds up a magic hybrid system that allows an Accord sized car to get 65mpg in real world conditions. Maybe Toyota develops a hybrid SUV that gets 30mpg and allows consumers to have the type of vehicle that people bought in droves when gas was $1/gallon.
No matter what, when it comes, Toyota (and to a lesser extent Honda and even Ford) will be able to run a line like this:
"Our hybrids have been on the streets for years, they've not been perfect, but we've had a lot of time and a lot of customers, so the bugs are pretty much worked out. With us, you're going to get a hybrid that is going to be as reliable as a regular car. GM doesn't have a history of real hybrids. They've got a couple mild hybrids, but didn't sell many. Now they have this plug-in hybrid, they showed it to us (3,4,5?) years ago and now you can buy it. For $40,000, or ($5k, $10k, $20k?) more than our least expensive hybrid model. The batteries and powertrain, while they have gone through millions of miles of testing, haven't had the same real-world, real-driver abuse our million plus hybrids have. Who you gonna trust, the company that has sold over a million hybrids, or the car with a comparatively unproven hybrid powertrain that too years to get on the road and whose price kept inflating?"
You may not like it, but thats spin. If GM had the upper hand, they would do the same thing.