SUVs and crossovers have more tire sidewall and offer a much better ride around cities filled with pot holes and crumbing roads. The higher H-point (hip placement) means climbing up and in rather than having to lower yourself down, a much easier operation. The belt line is still high, but your seat is also higher, so greenhouse and visibility is better. Being father off the ground reduces the sensation of speed, so more timid drivers feel more confident.
Car markers also get much higher margins from SUV/crossovers, so they are pushing them hard. All the deals are for these big vehicles, so that's what people are buying.
Modern vehicles are so much more aerodynamic, so there isn't that much penalty for a crossover. They also share platforms with their sedan and traditional hatchback cousins, so there isn't even that much of a weight penalty. Tesla Model 3 and Y are the same vehicle underneath, and while Y pays a range penalty, it's pretty small at ~7% EPA.