I'd gladly pay the extra fuel costs to have a vehicle that's worth a damn and has actual towing, hauling, and off road capabilities.

A body on frame SUV (like a Ford Excursion) is quite possibly the most utilitarian and swiss army knife like vehicles available. It seats a huge amount of people, has as much space as a cargo van, has the same tow rating as a 3/4 ton truck, and its 4WD with big tires and lots of ground clearance.