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Well, take your choice.....you're paying either way. If the government builds it, you are paying more in taxes. If the auto companies build it, you will be paying higher vehicle-prices.
Well, you asked for examples. I disagree that they are apples and oranges.
You were talking about muscle cars in the early '70's. Yes, emission standards were changing, which was the main reason you could no longer purchase a gas guzzler that went 0-60 in 7 to 8 seconds. What happened over time? Companies learned to adapt and find new ways of doing things to get the performance some people wanted in a vehicle. Things started to turn around in the mid '80's. Since you're a Buick fan, I'm sure you remember the '87 Grand National. Adaption and change do not occur over night. It takes time, as is clearly evident with the vehicles that have been produced since that Grand National. My old Lexus ES would have blown the doors off of most of those "muscle cars" of old. So, in retrospect, your example is actually proof that companies do indeed respond to customer demand.
As far as your other comments regarding EFI and disc brakes, etc... It was cost that was driving that. Average people weren't willing to spend for those things, so manufactures chose where to use them and where to not. They became more common as regulations advanced and people started to care about things such as stopping distance, etc...
