Well, I don't want to cram a baby, three dogs, and all the stuff a weekend jaunt to the lake house involves, into one of the sedans, so the CUV definitely has a place in our life.
That's why we own one. I don't know about anyone else, or really care about what image it projects (what image does it project?).
Our sedans are larger ( by today's standards ), and could probably hold everything, but I don't want dogs crawling all over them.
Ours goes, stops, and turns pretty well, possibly better than many sedans, and it does have a great sound system, that cool DVD thing in the roof, and a great a/c. It's much more comfortable and fuel efficient than the SUV it replaced.
Just like SUV's, these things are popular for a reason. Station wagons aren't, again, for a reason.