You get it.
The 500 is meant to emulate the look of the old two cylinder rear-engined 500, although on a much larger scale.
It is a pretty sucessful piece of retro design.
Chrysler's current Italian masters, who may turn out to be no more sucessful than the German ones were, apparently think that the underlying trend in our market is toward smaller vehicles, given that the underlying trend in fuel prices is not going to change.
Fiat may figure that retro worked for the PT Cruiser, the Mini, the New Beetle and more broadly with the Mustang, the Challenger, the Charger and the Camaro, so they apparently feel that this retro car is a good first effort in the US market.
I personally like the look, although Fiat was not known for reliability during its last run at this market.
Fiat was known for style and driving dynamics, though.
Certainly the 500 matches the charm of the Mini or Beetle, and is a stylish alternative for those looking at small Japanese or American brand cars.
Fiat better hope that it doesn't turn out to be a chick car, though.