Errh... young people buy the Prius. The bulk of its market are the eco-freaks and techno-geeks... people awed by the technology and wanting to own something both good for the environment and good for their wallet (the latter only being true because of government subsidy...)...
Have you
read a Prius forum? It's full of guys talking about computer hacks, hypermiling, battery modification and the like... not questions on how to keep your dentures clean.
These guys are not your typical
non-car people...
enthusiasts actually
buy Priuses... not just greenies.
Having driven one for a week, I can safely say... yuck... not my kind of car... too quiet... handling too inert... but it's big inside, comfortable, has decent acceleration (about equal to a regular 2.0 automatic sedan) and has incredible fuel economy. If it made any kind of financial sense without the tax breaks (since we don't get hybrid incentives here outside the US... the Prius costs roughly two Corollas...

) I would actually recommend it as a buy.
It irks me that people classify a Prius as an "old person's" car because it is "slow"... 10 seconds (or less) to 60 mph isn't blazing fast, but it's faster than a 2.0 AT Mazda3, Honda Civic 1.8 AT, etcetera, etcetera, ad nauseum... and the Mazda3 isn't an "old person's" car. Old people want a nice, big, quiet, comfortable car... a Park Avenue, maybe a Camry... but a Prius? They'd buy it because it got good gas mileage, but then, so does everyone else.
But me, I'm waiting to see if Hybrids can be anything more than a halo car, and can become mainstream. The cost of batteries and the need of subsidized/discounted pricing so far says "no"... and the fact that a depleting charge hybrid or pure electric might make more sense (if ultra-capacitors ever make it past the vaporware stage...)... mean that I'm placing my bets elsewhere, for the meantime.
If Honda can bring its own Hybrid in at that price range, it'd be competitive without tax breaks. That'd be a good buy.