Ross, first, I do agree they are taking a risk, but I what Dr. Larry Burns said when I saw him speak at U-M sums it up quite nicely, "I don't see problems, I see opportunities." Call me an optimist if you want but I really hope the Volt comes through, and am glad to see GM challenging itself.

Now, to address your comments:
1. After our junior-level mechanical engineering lab using wind tunnels, I'm not going to start to question the aero design without CFD. This is coming from someone who did well in fluid dynamics... There are a lot of things that play into aerodynamics besides only gross shape. For example, having a flat underbody helps quite a bit, while the turbulent flow within the engine compartment and around the wheels is also important.
2. Could you list the technologies being used along with the more optimal variants? The biggest question right now are the batteries, which are being developed by many PhD's at A123 and LG Chem. As far as the ICE, a 1.0L turbo is definitely not suboptimal. The next question: how much high-strength steel and aluminum will they be using for weight reduction? They are testing batteries for two years because the Li-ion technology isn't ready to plug-and-play, it is evolving (currently Ni-MH is used in hybrid vehicles almost exclusively). They need to make sure to get it right before selling it to the public - remember the Pinto?
3. Too technologically complicated? The aerospace industry is way more complicated than automobiles. If you want technologically complicated, go to Boeing, Lockheed, or NASA JPL. I also don't think with your statement about people willing to settle with bare minimums is representative of the customer base for this car.
4. GM could do that, but then when the cars have a high failure rate, people would blame it on "poor American engineering" and strengthen the stereotype (more on this - as of last summer, Ford had eliminated the quality gap with Toyota, based on JD Power reports, while both were still behind Honda).
5. Who do you know at GM with this attitude?