Yup, it's an arms race to see who can buy the biggest vehicle so that they can see over the second biggest vehicle and survive a collision with it.
But small cars are only unsafe because of that discrepancy between the largest and smallest cars, and it's not just weight, but height difference. It's possible to survive crashes at very extreme speeds in very light cars if they are designed to work that way (see: F1 crash g-force). Not so much if you literally get run over.
The culture needs to change. A vehicle is not a living room. The driver's seat is not a sofa. You don't need a TV in the dashboard. You don't need 8 seats when 7 of them are unoccupied 90% of the time. You don't need to go into debt to buy a land yacht.
So yeah... you're right, but it's a bummer that we've arrived at this situation.
With shortages in housing, why would culture change to support smaller cars when bigger cars are better for living out of vs living out of a small car is just the worst.
And that’s why any vehicle over 2 tons should require a commercial driver’s license. Let plumbers and tree removal services drive them and not 19 year olds whose parents want their child to survive a fatal crash at the expense of everyone else in a twenty foot radius of the wreck.