At the civilization view/level of "holy crap we have to get off of ICE", PHEVs are critically important to migrating the transportation system off of carbon in the very near term.
Basically, consider that battery supply is going to be functionally limited compared to the number of cars that there are on the road.
If a decent range (40 miles+) PHEV can make all-electric 90% of daily trips and mileage, then that is basically the most optimal design/allocation of limited resources.
I'm not saying we don't work on all-BEVs. But PHEVs shouldn't just be incentivized, they should practically be required for all non-specialized consumer car purchases, or you suffer a very rapidly phasing in car and registration tax.
The atkinson cycle engine is likely a bit new in terms of engineering and maturity, and while your "puff of smoke" will be significant, again, a good PHEV will handle 90% of trips all-electric.
In particular, if we can get a good PHEV design using LFP chemistry (cheap, plentiful, wide temperature range, safe, and very very deep recharge cycle limits), that will help enormously.
And I have a very dim view of Toyota. They could have PHEV'd a decade ago or earlier (Prius and Insight were on the road in 2001 remember) and have mystifyingly dragged their feet in adopting them.