Disclaimer: I am not a car person. I do not know the difference between a hatchback and an SUV, except that SUVs are bigger.
This is entirely anecdotal so take this how you will.
Having lived in another nation for a few years, the cars you are calling “compact crossovers” are huge compared to the sort of cars sold in other nations. I don’t want to give too many details about where I used to live, but in that nation, roads that we would consider to be one-way, one lane roads were used as two-way roads. If you meet oncoming traffic, the rule is the smaller vehicle pulls aside for the larger one. This is in urban areas. There is no shoulder to pull onto, there is a building there. If everyone with a car owned a huge American-style car or SUV there, it just wouldn’t work. Many parking places just don’t accommodate for them.
Another anecdote: Despite every house on my street having a two-car garage, there are huge vehicles parked on either side of the road, making our road wide enough for one lane of traffic. These two-car garages were built in the 70s and are too small to fit two vehicles now. Either one car is in the garage and one is on the street, or both cars are now on the street and the garage is full of misc stuff. Why would a road with with two car garages for every house have such congestion problems?
IMO, More people are buying SUVs than they used to. And their “cars” are simply much larger than they used to be.