> Terrible capacity, slow / low power charging infrastructure
These are the things they make irrelevant because they're hybrids. It doesn't matter if it has a short range or takes 8 hours to charge because you charge it once a day overnight or while you're at work, which is enough for 98% of the days because the range is still double the average commute, and then the other 2% of the time you put gas in it.
> minimal use of electric engines at higher speeds
There are hybrids that can do 85 MPH before starting the gasoline engine.
> you could theoretically make one with a good EV powertrain, but then it would likely be more expensive than a pure EV
You could make a hybrid that could do 200 MPH in electric mode and the main thing you would have to change is use a bigger electric motor, which isn't the expensive part. But nobody really needs it to do that.
> And battery prices drop substantially every year
Do they get substantially lighter though? Because that's the expensive part. A hybrid can have a battery which is 25% the size and then spend less than half the saved weight on the ICE powertrain. Then it's lighter, which not only increases the number of miles per kWh, it means you don't need such heavy duty propulsion, suspension, brakes, etc., which saves even more weight and cost.