I agree with you, but I think you and many others do not grasp the 'logic'. What may seem illogic - because CUVs/SUVs are not really best at anything: less space efficient than wagons, bigger than hatches, less space for cargo and people than vans, less (if at all) off-road capable than 4x4, worse handling than sedans, not as good looking a coupes, usually less luxurious than high-end cars (changing with LX, GLS, X7, Bentayga, etc.), not as rugged as utes - turns up to be something very logic: customers WANT a jack off all trades. I think customers themselves are not even aware of that, and that is the reason car manufacturers fail to some extent with their market research, they cannot get the feedback from customers that do not consciously know what they want, they just feel they want it. This 'want' is not well measured, because it is not quantitatively nor qualitatively realized, neither by manufacturers nor by customers.
The Toyota CH-R and Mercedes GLC Coupe sell so well, because that is exactly the type of car that is wanted. I expect the X2 also to be a huge success, though it is overpriced. What killed sedans in Europe at least, where hatches, not CUVs/SUV's, which are not more than taller/lifted hatches, now made to look (rugged). [About rugged I wonder if customers really want that look with plastic cladding.] What killed wagons are CUVs/SUVs, but not because of their greater cargo or passenger space, but rather the slightly higher sitting position, which I would say is more about have the same view height as when a person is standing, rather than "seeing over the car in front". And next is handling: adaptive suspension is solves this 'jack of all trades' issue, but a good compromise of handling (sportiness) and comfor63t can be achieve with simple hardware: suspension setting and tires (not low profile, but somewhere in the middle, between low and high). [I personally dislike car setting knobs.] Last there is AWD, something I think most customers would want, if money were not an issue (with exception of those that really want only RWD).
It is all about having the feeling of being "free", be able to do "everything", have one car that fits every situation.