I haven't seen any data suggesting degradation is worse in smaller capacity batteries, but even if it is, degradation as a whole isn't as a big a deal as might be believed. It was significant ten years ago, but insignificant today.

I'll take your word for it on the torque point. I don't remember much about EV torque comparisons but it makes sense on the face of it that if you lose a bunch of the energy, some of the torque goes with it.

On battery replacement due to degradation:

Across all years and models, outside of big recalls, only 2.5% have been replaced. This increase from last year is entirely due to older cars. For cars older than 2015, replacement rates are 13%, but under 1% for cars from 2016 and newer.

Non recall replacements (by year of manufacture):

• 2011 - 30.00%
• 2012 - 15.94%
• 2013 - 9.81%
• 2014 - 6.81%
• 2015 - 3.90%

That's an order of magnitude improvement in half a decade, and the best of that is already ten years old. Battery technology is only getting better, and with better batteries, we could afford to put smaller ones in a commuter car and sell them cheaply.