Although I don't disagree with you (I'm from Belgium, same narrow roads etc.), I was wondering, at which RPM's do those engines reach 140 bhp? Even though it's true that excellent cars have been built for the European roads and traffic (try making a 180° turn with an American car on our roads... ), in my opinion there's still something to say for the 'there's no replacement for displacement' idea.
I've driven quite a few cars of the VW range of brands, mainly the older, quite dirty, yet very reliable 1.9L turbo diesels. And while it's true that their modern 1.6 counterparts perform the same on the road, it becomes a different story when you're pulling a 2-axle trailer loaded with 1000kgs (legally too much, but hey, you know, it happens
) freshly cut firewood, off road...
At some point a pretty big van slipped off the forest road close to where I lived, and pretty soon had sunk its right wheels up to its axles into the soft forest ground. No 4x4 available, so I decided to hook it up to my 1.9 turbodiesel Golf ('Rabbit' in the States, I believe). Not a good idea per se, but it pulled it out as if it was nothing... Try to do that with a 1 liter engine... I might be wrong, I'm not a car expert or whatever, just personal experience.
When you mention 1.9L engines to (really) young people, they consider it 'massive'. Go figure
.