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When the only other cars you've owned have been a 2002 Punto, a 2001 Polo, a 2020 Subaru Crosstrek and a 2022 Subaru Outback (which are both very lifted and have an insane amount of body roll) - trust me - a CX-30 feels like a genuine hot hatch. I read a review that said something like 'If you want a Mazda3 but don't want to slow down for speed bumps, buy a CX-30'. Pretty good summary tbh. I've taken it into the mountains and it really rails corners given the type of vehicle it is.
If you genuinely want to know where it came from, I believe the demand for SUV/Crossover type vehicles really kicked off with the Lexus RX 300 in the U.S. - which has the drive train of a Camry - aka it lasts for 200,000+ miles - but had more space inside without being ridiculously big.
Unfortunately, that kicked off the trend of other manufacturer's trying to compete, but because they couldn't compete with Toyota/Lexus' reliability, they instead just made their cars bigger... and bigger... and bigger. Now its a cycle of someone wanting a new car, but as you say, wanting to feel safer, so they get the same sized car as other people so that they don't feel 'small' on the road.
The size of cars where I live is quite extraordinary. I live opposite a private school and the real life size of a 2022 Chevrolet Tahoe, Lincoln Navigator, Jeep Grand Cherokee etc is quite frankly laughable. I'm 5'8" and the bonnet is the same height as me if I am standing in front of it.
I bought a Mazda CX-30 in October - which is easily the nicest car I've owned from a pure driving perspective. It's well priced, its very nice inside, yet you hardly see any of them on the road because its 'too small.' And when there's a huge pickup/SUV behind me, man do I feel vulnerable. Their LED headlights shine directly into my eyes via my mirrors. And its a lifted hatch. I can't imagine what people in actual hatchbacks or small sedans feel like when there's a monster truck breathing down their neck.