I did a lot of research on all the new sub-compact cars on the market and found the Scion xA to be the best for the price. I especially like the fixed pricing where you don't have to deal with sales price haggling. I got the extended warranty that covers me for 7 years or 100,000 miles for an extra $1,100. This car really zips around town. I find no problems with the limited horsepower. It would be nice to have a larger fifth gear for the freeway maybe to push it over 40 mpg. The middle console was no problem getting used to. I think there is plenty of cargo room with the seats down. I was also able to get a lot of stuff (tools, jumper cables, blanket, towels) in the spare tire well. This car an A+.
The auxillary input, rear defroster and wipers, keyless entry, and power everything. I have a Sirius Starmate Replay radio that I installed and it sounds great. I also love the steering wheel controls, though the buttons could be a little softer / more sensitive.
Give it a larger 5th gear to improve its highway gas mileage. It also should have a more comfortable front seat, long rides make my lower back ache a little. Cruise control would be great, I found a few aftermarket kits for under $500. There is definitley not much to improve upon, maybe a little more cargo space would be nice.