I think this trend will continue as long as we have non-hybrid sports cars... hp will always sell cars because it means fun-to-drive. But in reality, we like high HP cars because they generate a lot of TORQUE... and TORQUE is what makes a car feel fast.
(I don't mean necessarily the ENGINE makes the torque, sometimes its a high revving engine combined with a good gearbox that generates the torque at the rear wheels that gives that sporty feeling)
I think that hybrid cars will upset this trend a bit because electric motors can generate TONS of torque at zero RPM. An all electric drivetrain with good controls could theoretically smoke ANY internal combustion engine in a drag race. There are a few demonstrator cars (including the new ZAP Inc. hybrid SUV) that have electric motors mounted in the wheels.
These cars will one day replace big-block IC engines as the performance kings... there is just no way to really compete with the torque production and wheel-speed control an electric drivetrain gives you...
But I am a design engineer for robot-drivetrains, so you could see why I might be biased this way.
~LSx