Yep. I always prefer to drive my S when I can and especially so on non highway roads. However, I also consider those risk factors too. Rush hour traffic only? Going to use my 94 T Bird (sacrificial lamb and airport beater car). Long drive on boring highway? T Bird. Might as well burn up useless miles on the other car, it is actually a comfortable road car. Downtown in crummy neighborhood in heavy traffic? T Bird. Leave it out in a city at night? T Bird. Cross country? Now you are talking!! S!! I have driven the S several times all day long and found it to be comfortable but I do take frequent breaks to stretch and ventilate the bladder.

It also seems you have hardly driven your S. In your situation, drive the S.

 

44-48mpg freeway with a diesel is still not 50mpg average between city and highway. The Prius eats up stop-and-go and city traffic. I've had mine at 100mpg for 15 minutes straight when traffic gets backed up.

The 60mpg Honda Insight was a 2 seater with 80 horsepower, the 50mpg Prius is a mid size car that carries 5 passengers with 134hp. Big difference in size and performance. And as far as Honda producing the "best" hybrids, I'd love for that to be the case because I'm a big Honda fan. But unfortunately Toyota makes a better hybrid than Honda, regardless of how they are marketed.

A 1978 Civic had a whopping 60 horsepower and didn't have to conform to all of the current safety regulations (ABS, airbags, crash structures, etc). It was rated at 27mpg city and 34mpg highway. Not sure where you're getting the 55mpg highway number.

But if you're looking at extreme examples, some Prius owners are able to get 60-70mpg combined.