Cost is a huge factor, and now that hybrids are a small cost increase, or even the default option on some models, sales have increased substantially. Basically half the cars that Toyota sells are hybrid or EV at this point.
...was also incredibly slow.
A pitiful 70 horsepower motor assisted by a 44 horsepower motor that combined to an anemic 104 horsepower [0] on a car that weighed ~2,800 lbs.
I had to borrow my in-laws' car once, which is a first gen Prius, and I found the extremely sluggish performance to be outright frustrating. I felt like I had to floor the accelerator to reach highway speeds in any reasonable amount of time.
[0] Not a typo. The numbers don't add to 114 because they can't both deliver peak power at the same time.