Something is very wrong with this. Why would a sane person risk injury to himself and others of avoid hitting a squirrel? I have often avoided hitting small animals when this could be done with complete safety. On those few occasions when this could not be done because of road or traffic conditions, then, "thump, thump," and "keep on trucking." Consider the the moral equations in this situation. Would not risking an accident to save a squirrel be deeply immoral? At best one would be hazarding human life for sentimentality, and at worst for idolatry.

What, no mention of moose?

Years ago I was driving the road north out of Big Timber, Mont. at a time of a prairie dog (or some sort of vermin rodent) population explosion. There were hundreds of carcasses littering a thirty mile stretch of road, more than the scavengers could handle. The stupid things would see you coming and freeze, and as you tried to avoid them, they'd suddenly dart to the side-- "thump!" I spent more time trying to avoid the carcasses because they'd at least stay put, and too much splatter on a vehicle can get a bit smelly.

(And a friend of mine did get to take out a bison once. At about 35mph it totalled both the car and the bison.)

A friend of mine lost his wife in a collision with an elk in Finland. Very dangerous animals, their legs lift their bodies just above the hood.

A car doesn't "collide" with a squirrel, it "pancakes" it!

There's no need to choose, SUVs can be hybrids too - And will be.
In fact, it's far easier to get the typical SUV buyer to shell out another $ 3,500 for an additional drivetrain than it is to get the typical entry-level sedan buyer to do the same.