Maybe... I think it would definitely help. I think just driving a smaller car that puts you in control might cause a lot of people to switch. I know that when I've done the opposite; gone from a very performance oriented car to a random person's SUV, I've felt extremely unsafe comparatively in breaking, merging, changing lanes, parking, etc. etc. I think most people just have little experience to compare it to anymore.
I also think it's odd that people don't already choose other options w/o a tax in place, considering the price of a bigger vehicle is almost always just going to be higher because of materials and a bunch of other factors.
>I know that when I've done the opposite; gone from a very performance oriented car to a random person's SUV, I've felt extremely unsafe
Which two cars? I've gone from a 911 to a BMW X5 and the X5 was just as fun for what it was. They are completely different cars, I'm not sure what you would expect and why you judge others.