My relatives drive a Camry Hybrid, and I've used it a fair bit. It certainly does have better torque, and slightly better real world mileage (5.5 litre/100km for the Camry, vs my Yaris at 6.0 litre/100km). It also drives more comfortably on the highway. It's less affected by wind/passenger weight, though downshifting to 4th has never been an issue for me.

However, as a sedan, I strongly dispute the "more space for passengers and cargo". The trunk is larger in the camry, but has severe limits that the Yaris, a hatchback, does not. Carrying a mini fridge, for example, is out of the question in a Camry, but easy in a Yaris (as long as you only have 1 or 2 passengers). Also, the camry has better rear-seat leg room, but much less height, such that my head (185cm) touches the roof in the back seats. Finally, the Yaris has better clearance for rough roads, and much better turning radius and visibility for city driving. (Oh, and my cost after 150000km, including purchase, fuel, and oil changes, is just approaching the purchase price of a Camry Hybrid)

I wish the Yaris Hybrid, available in Japan, was available in North America.