I decided on purchasing a Toyota Matrix in Sept., after my new 07 Chevy Malibu was totalled in a car accident in August. It took me a little while to get attached to the Matrix, as I really liked the Malibu. I'm getting almost 30 MPG (all city driving) with the Matrix. It's just a basic car - no bells and whistles, but it's comfortable and, being a Toyota, I'm expecting it to be around for a long time. Though it looks a bit small, I'm actually able to fit my family of five in comfortably.
Driver seat is very comfortable and the Matrix is generally fun to drive. Everything in the engine is easy access and oil changes are only needed every 5,000 miles (not 3,000). Sound system in the basic version is plenty good enough and there's many cubby holes and compartments to store things.
It's a little awkward turning the heat/air up and down, as the shifter sometimes gets in the way. It would also be great if Toyota could make the Matrix a little longer. Another foot in length for hatch storarge would be fantastic. If they do that, I'll buy another one down the road.