First you said
But isn't this meddling with peoples' choice of cars. Yes! We're encouraging people to make choices that cost us less. But we're still giving them a choice. That's more than you get under a system where you're forced to pay the consequences of other peoples' selfish choices.
then you followed it with
.... people are still driving more gas guzzzlers than is offset by the income, the answer is to raise the tax.
so obviously you are more concerned with using a Government proxy to bully people into behavior that fits your personal agenda than you are for people paying for their choices.
Seems in your universe, people are free to choose, as long as they chose what you want.