Bigger and faster is precisely the trend that should be reversed. While safely systems overall has improved, making faster cars makes them less safe. Cars should NOT be built like race cars. We can have separate race tracks for that.
No it doesn't. Driving a car faster is less safe, all other factors being equal, but simply making a faster car doesn't make it less safe. Look at Mercedes's performance cars, which typically lead the market in safety features. An example off the top of my head is the carbon cone built into the front of, I think, 2000-era SL500s. They could dissipate a tremendous amount of energy, making that fast car significantly safer than most other cars on the road at the time.
(Of course when you push the limits of the car, all bets are off again.)
We do have racetracks, and people want to drive regular cars fast on those racetracks.