Ummm most cars of that era didn't get 32MPG. Maybe 12MPG or 15MPG average, but not 32MPG. If you are referring to the falcon, that thing was extremely under powered (2.4L 85hp), and ford themselves claimed UP TO 32 MPG (http://www.oldcarbrochures.com/static/NA/Ford/1960_Ford/1960_Ford_Falcon_Brochure/1960%20Ford%20Falcon-11.html) so it probably got more like 25 (still good compared to most cars of the era but still not amazing).
Let's start with the safety stuff, I would argue even if all that went away tomorrow, the weight of cars would change very little, why? People want a lot more in a car now, they want really quiet cars, they want cars that have gizmos, all that weighs more. Look at the CRX from the late 80s, certainly safer that falcon you mentioned, they got 40-50 MPG highway generally, didn't make that much less power than that falcon with a 1.3L engine (the second gen made 5 more HP with a 1.4L, yup those emission controls sure are killing fuel economy and power) and got 50 MPG. Why did it get 50 MPG? It weighed nothing. It certainly had to meet safety standards by then, instead it had nothing in it. Had almost no sound deadening, no gizmos, nothing. Sound deadening weighs a ton! You can bet if we pulled that stuff out, pulled out all the power seats, electronic gizmos and so on cars milage would increase. Would anyone stand for it? Probably not. But safety gets an unfair portion of the blame for this.
As far as CAFE killing station wagons, I don't buy it. American consumers weren't buying wagons anymore so people stopped making them. Volvo, a company who for years, their bread and butter was wagons, now no longer sells wagons in the US. Why? Hint it wasn't because of CAFE, it was because they had only sold a few 1000 the year before. When VOLVO can't sell wagons, no one can.
You do understand why the EPA was created and started regulating vehicle emissions right? Have you seen what LA looked like in the 60s and 70s? GROSS! And it wasn't just LA, it was many major cities throughout the country. When that stuff hit it caught all the american car makers off guard, they had to jump through hoops to make their horridly inefficient V8s meet emissions standards, while the europeans for example, had to do little as they had moved to more modern OHC designs and embraced fuel injection. GM instead insisted on using computer silly controlled carbs (that Japanese did some of this nonsense too) well into the 80s which held down milage and power down, especially when combined with out of date engine designs. Seems to me they tried to ignore emissions regulations as much as they could in hopes that they'd go away. Also technology has us building far more efficient engines than we've ever built that put out almost no emissions, and aren't hindered by these controls like american V8s were in the 70s and 80s.