I agree, a Panda is (at the moment) a sensible, viable alternative. I recently hired one for a week in Italy, nice spec, no stop-start, minimal unnecessary complications. Very enjoyable little car, highly recommended.
No doubt that will all change when the new Panda comes out .. probably with extra unnecessary length, weight and cost.. but of course much safer than the "deathtrap" it will replace...
Similarly the Seicento was excellent, probably the last genuine, sensible small car we will ever see. Just check out the ridiculous "equivalent" now offered by Toyota! Horrendous!
I agree with you, we should all be driving around in Model T Ford's and there shouldn't be any progress at all.