Those numbers don't need to be so scary. CAFE ratings are not the same as the EPA fuel economy ratings on the window sticker. CAFE ratings are significantly higher, so a car EPA rated 31mpg highway might be CAFE rated 44mpg. Then there's 'trucks', which includes 35mpg compact station wagons with flat floors...
As I posted in another thread recently, CAFE is to blame for the proliferance of SUVs and trucks being driven by people who would be better served by more efficient cars.
According to
http://www.nhtsa.dot.gov/CARS/rules/CAFE/overview.htm the current CAFE standard is the same as it was in 1985. I don't suppose it's entirely unreasonable to jack it up a bit after 31 years. While it did send people seeking refuge in SUVs and trucks so they could drive something reasonable, it did encourage technological development that produced lots of power, speed, and reliability to accompany the increased economy.
True, you can't get the cheap basic 40-50mpg cars you could in the late 1980s/early 1990s, but now you can get full size cars that beat 30mpg (Impala, anyone?) so they don't need to foist those tiny underpowered cars on people to meet CAFE standards anymore. Cars are heavier than ever and less aerodynamic than in the 1990s but for an equivalent sized car you get better MPG and greatly improved safety, power, ride, handling.
GM, Ford, and Asian companies tend to meet CAFE requirements, while European makes have had to pay some fines for not meeting CAFE.
All in all, the growing pains are scary and I'd hate to think I'll have trouble finding a nice heavy vehicle with a decent ride, but CAFE has played an important role in delivering the Camaro we have today and any number of other great cars and technologies.