Using a MPG measure would lead one to think that 20 mpg and 30 mpg are equidistant from 25 mpg, when in fact, going from 20 mpg to 25 mpg saves you $4,000 over 100,000 miles at $4/gal, while going from 25 mpg to 30 mpg only saves you an additional $3,667.
This has political implications as well, since CAFE standards are based on this non-linear value, a car company with a barbell of an extremely inefficient car and an extremely efficient car can have a better average than a company with a moderately efficient car even though the barbell uses more gas and pollutes more. (We'll ignore the irrational averaging by models rather than by sales -- that's another issue.)
I recently started looking at whether it would be worth it to replace my current gas guzzler and this was part of the calculation. You can see my numbers here: https://docs.google.com/spreadsheet/ccc?key=0AkSgUqAZJOp-dEJ...