The best urban car I ever had was an SUV.
The 1.6-litre, 5-speed Suzuki Sidekick was narrow and agile enough to squirt through the traffic, tall enough to spot the openings, and able to leap tall curbs at a single bound. It laughed at snow and ice, carried four people in comfort and five in a pinch, yet fit in tiny parking spaces. It could haul a heap of stuff, up to and including a full-sized 30-inch appliance with the hatch closed. It also got way more than 30 miles to the gallon and never, ever broke down. Outside the city, it was even good for a bit of mild off-roading.
If a Smart is smart, that Sidekick was a freakin' genius.