Yeah supposedly they're bringing out something based on the Fit/Jazz. But I think that won't happen until after a new Civic comes out. I'd say it's due for an update for the '06 model year, and it'll probably get bigger to compete with the likes of the Corolla, Focus, Mazda3, Jetta V, etc, thus leaving "room" (in the minds of typically conservative American branches of Japanese car companies) in the lineup for a smaller car. The Fit/Jazz is a whole lot taller than the current Civic sedan and coupe, so it doesn't really qualify as smaller. In the markets where the Fit/Jazz is sold, Honda also sells the Civic 5-door which is pretty roomy inside.