The 800 was supposed to be a people's car when it was launched. It was priced lower to take on Sipani's Dolphin which was successful then.
It did kill the Dolphin. But are we crawling with 800's now ?
Nope, I think the buying public will definitely decide what is good or bad for them. And when an individual buys, he does have certain parameters before he makes a buying decision, of which driving through daily traffic is one.
People go in for 2 wheelers in crowded cities, as it is more convenient to find the gaps

and move on. Same with me too. Though i had the peugeot, i commute to office on my bike.
But think of the benefits of the small car. Definitely a better option for a Second car in the family. You can accomodate (?) more cars in the crowded parking lots. And lastly you should be getting a better mileage. Hopefully all the auto drivers migrate to this small car, so that they cannot poke their nose around.
Our government, even after 50 yrs, is not a pro-active one. (We had one visionary in Vajpayee and ask the Lorry drivers who drive long distances on these roads) We have a reactive government, which will enter only when things are set to a boil. The government and industry must go hand in hand, needless to say.
sorry if I had been long, my opinions.