Well consider the orignal Mondeo sold in the US as the Contour. Great car but it sold poorly because it cost as much as the larger (yet much older) Taurus. What did Ford have to do, they discontented and cost cut the car. Many of the nice things such as fully adjustable seats on even the base cars and heated mirrors were removed. Equipped as it would be in Europe, Ford couldn't sell the car for a profit. I suspect they were thinking about that when the elected not to give us what was promising to be a more expensive gen 2 Focus. Perhaps that wasn't a bad move when gas prices were lower (when that choice was made). It certainly seems like a bad move today but it is unfair to judge the choice in historical context. To be fair to those who made the decision we have to ask was it the right choice at the time, not in retrospect. Sometimes we just get lucky in retrospect.
Also, keep in mind without general road system handling is likely less important and ride quality more important. It’s not just the domestics who seemed to have reached that conclusion. The Japanese have largely followed the same path. Look at the size of the US Accord vs the Euro model (sold here at the Acura TSX).
BTW, I think the Focus choice was dab.