SUV's rise has very little to do with CAFE, and more to do with:
- cheap fuel prices in the 80's, after about 1983 or so. - lax energy policy (CAFE was actually relaxed in the late 80's due to the whinings of Detroit, with threats of job losses. This is Detroits clbuttic tactic to respond to CAFE and air pollution laws- that, or bring up the "safety" issue by implying that cars that are energy efficient will necessarily be small and unsafe). - marketting to a narcisistic demographic, the baby boomer, who had been the first generation spoon fed Madison Avenue through the television. Insecurity about aging also made them vulnerable to the marketting for the SUV- a vehicle that could haul around your children, hidden away under tinte windows, all the while projecting a youthful, sporty image.
The funny thing is the bad nature of SUV's, especially the lack of safety, was publicized for years. The Suzuki Samurai in the late 80's, early 90's had a reputation for rolling over and it was a news story alot. But people didn't stop and think that other similar vehicles would have the same problem. People are just too stupid, I guess, in general.