P&S definitely have their time and place.
Also, couldn't agree more that the Fiat 500 is incredibly tiny and probably couldn't carry two passengers and large lens.

Possibly I'm misreading your intent but, "P&S definitely have their time and place", is the sort of backhanded, somewhat dismissive type of remark I hear with regularity from the die hard DSLR users. This thread isn't intended to be about the time and place for a P&S nor a discussion of the time and place for a DSLR which, it could be argued, can be replaced by an analog film camera for even better results. To each their own and to each their budget can be satisfied with a decent camera when they have facts and not hyperbole to work with.
Readers of the forum can find advice regarding the pros and cons of each camera type in enough locations to make up their mind about the usefulness to them of any camera type. The thread is merely here to introduce the P&S user to the idea they are often only limited by their willingness to gain a thorough working knowledge of and experience with their camera and how to make high quality images with minimal investment of resources which often are required by other of life's many demands. The thread isn't at all about equipment envy. And certainly is meant to demonstrate just buying lots of recommended and expensive gear isn't necessarily going to make you a better photographer.
As to your comments regarding the Fiat 500, I know this isn't an automotive forum. Just my two cents worth here though, the 500 is bigger on the inside than you would expect by looking at the outside. My SO has been an amputee for the last 17 years and has been in a wheelchair on several occasions over those years. We had up until the Fiat a Rav4 which was room enough for us and the wheelchair but got what I considered lousy gas mileage. I was recalling my Hondas from the '70's and '80's which gave me 40 mpg on average while the Toyota struggled to get 20 in my day to day driving. After 17 years with the Rav4 it required either maintenance or trading. I would go into a dealership and tell them my priorities of 30 mpg in town and getting a wheelchair in the back and they would either laugh or take me to something that got 24 mpg and smile a rather stupid grin. Of course, most didn't know their own products, most only knew how to sell one or two models and, therefore, treated the other buyers with indifference to the client's wishes. Lazy salespeople exist in all fields and they all tend to fall back on what's easy to sell not what the customer wants or needs.. But this is also not a sales person bashing thread. I worked in sales for 30 years (and, really, aren't we all in sales of some sort) and just know how a lot of salespeople think.
I looked at the Fiat, drove it (with a manual transmission) and thought it was a great deal of fun to drive - which the SUV wasn't - but thought it might not have the interior room to fit the wheelchair. The sales manager loaned me the car for a day and I stopped by a pharmacy that rents wheelchairs asking to borrow one for five minutes. Put down the rear seats in the Fiat - which aren't usable for much, everyone admits - and slid the full size wheelchair into the car with minimal effort. We made the deal when I returned the car the next day. Now I'm averaging about 30 to 32 mpg in town (Dallas) and can get far more in the car than I had ever expected.
However, the Fiat and a camera is more about the lack of hiding space for a camera. The Fiat is pretty wide open and a big camera bag isn't going to fit behind the seats. Just as the 500 has good visibility out, so too does it have good visibility into the car. I don't want a large camera bag, which suggests large and expensive equipment, sitting in the hatch of the Fiat when I make my daily scheduled visits throughout town.
With the gas money I save though, I certainly could more easily afford one of those large DSLR lenses you mentioned.