Wow, that Honda Insight looks like a Honda version of a Prius.
I heard rumors that Prius might end up becoming a brand name of its own, no longer Toyota Prius, but Prius as in Lexus and Scion. Then the different cars under the Prius name maybe like Prius A, Prius B, Prius C, etc,.
The next evolution for IC engines for hybrids I think would be one optimized with the electric motor, meaning that the engine would consistently operate at its peak power/mileage efficiency ratio for electrical generation. This would simplify a large number of parts in such an engine and could even use new systems like rotary valves.
Underneath the name "hybrid", the approaches are still very different.
Lets say Toyota's Synergy Drive and Honda's IMA (Integrated Motor Assist). Their difference goes down to the fundamental concept.
Synergy Drive works like this.
Engine => Transmission <= Electric Motor
IMA on the other hand, works like this:
Engine => Electric Motor => Transmission.
In the case of SD, as you can see from the layout, the engine can drive the transmission without the electric motor running, and the electric motor can drive the transmission without the engine running.
On IMA on the other hand, means that if engine or motor is running the transmission, the other has to be turning as well. I think Honda does this because they can save on space. The best way to describe this method is a sandwich, where the motor is between the engine and transmission in terms of mechanical output.
I prefer Toyota's system, and its no wonder why Toyota's system is the premium standard on the world right now. Each drive, whether engine or motor, does not drive the other, so you get less mechanical losses. In the Honda system, both are continually running, in the Toyota system, the engine can completely shut off while the car is moving. That might take a little while to get used to as it adds a surreal feeling to the car.
In a hybrid, to save on gas, you want the electric motor to come online as often as possible. For this, you want the electric motor to be stronger, so you have less gas motor assist. So all hybrids is not equal. The Honda Civic hybrid has a 20hp motor. The Prius has a 67hp motor. Which car do you think can leave the traffic light on the electric motor alone?
As an anecdote, the US government was shocked when the first Toyota Prius came to US shores early this decade. They had one example taken to the Argonne , National Laboratories for dissection, and the results they said, was even more shocking, and the sense of a chilling omen to the Big Three if they did not step up to compete with foreign green car technology in the long run.
I am learning more about hybrid technology as I go along. It should also be noted that the engine for the Camry Hybrid, although coming from the same family that powers all gas Camrys, Avensis and Scions, is a special one. For example, it has an effective compression ratio of 12.5 to one, using Atkinson's Cycle. It is as you said, optimized for the electric motor, and is made for high grunt at low RPM. I think that's another problem with the sporty Honda motors being adapted to hybrid use, since they are on the opposite: soft on the low RPMs, with lots of power coming on at high RPMs.
Although other gas cars, like Nissans, have CVT (continuous variable transmission), only the Toyota Hybrids have CVT for their lines, such as the only CVT you can get for a Camry is through the Camry Hybrid.