Yeah, that's been done. Here's another article with a bit more information, including mention of other models to be revealed at the upcoming Tokyo Motor Show. Also mentioned, along with the new Prius C and an all-electric, is a fuel cell vehicle that uses hydrogen. If it were GM, I'd make the cynical accusation that a FCV was created only to soak up more government grants, and give the illusion of zero-emissions. But Toyota? With all due respect, Mr. Toyoda, why hydrogen? How will it ever be possible for hydrogen to be produced more efficiently, with less overall emissions, than electricity?
No idea but they have to develop all types - electric, hydrogen, diesel, natural gas and petrol so that you're covered for the future.
Yes, but....when one option is so insanely expensive and inefficient that it pales in comparison to all others, I have to question the wisdom of pursuing it.
Marketing? You can't be left behind (look at how the other manufacturers are still behind on hybrid technology, 14 years after the launch of the Prius)
Please, tell me Toyota is smarter than that. If they truly want to be the world's number one car company, letting others travel the wrong path - never mind who's 'leading' - is a far better strategy.