THe EV1 was heavilly subsidized by GM and would have become a liability to leave in the public's hands. :/
IMHO, the eagerly awaited Volt is going to be a big hit with many people - a plug in EV with a hybrid system for extended range when your batteries run low. I agree that the government is going to have to force the issue - but not so much the innovation - the general public is not ready to buy the current round of high-fuel economy vehicles. The reason we have big, gas guzzling SUVees is because people want them.
As soon as our government takes a step and realizes the automakers sell what people demand and also start getting shuttled around D.C. in a compact car, I'll back what they want.