I'm not sure I agree 100% with all decisions being driven by market demand. Sometimes I believe that manufacturers "engineer" demand for a particular model segment by only making the items that are the most profitable, and dropping the models that they *claim* are not selling. It's easy to engineer demand-- if you stop making what people want, and only offer what they don't want, they'll buy it. Then it's easy to say, "Hey, look, everyone wants SUVs", because that's all there is to buy.
I bought a Golf because VW does not offer in the US the car I really want (which is a Touran). So my data point contributes to the notion that people will buy what the manufacturers give them.