A small conventional is definitely not more fuel-efficient than a hybrid car because no conventional car is.
However, advancements in fuel-efficient cars are on the horizon. Auto manufacturers are working on plug-in hybrids, battery-electric cars, and gas-engine systems that are more efficient. So look out, your dream car is coming soon. But if for now, you just buy a hybrid, you won't regret it.
The cost of hybrid cars is higher because of extra batteries, extra electronics, and sometimes, other considerations related to design. However, there can be trade offs.
Some people think hybrid cars may be able to pay for themselves because of the savings in gas. However, that is very debatable. It depends on the number of miles traveled, the cost of fuel, and sometimes subsidies from the government.
