I'm sorry to hear about the affinity to the H badge, I hear doctors can help you with those sort of problems these days haha j/k I agree with the FWD thing, I pushed Corollas for years!
As for the image thing, I get the feeling that the "Sportivo" models were a image-building foot in the water for introducing TRD to the market. They were just undercooked in typically conservative Toyota style. The Sportivo versions of the Echo and Camry were lame compared to the Corolla (and they only got that right with the ZZE-123, after first bolting a turbo onto the geriatric 7A-FE.... what were they thinking?).
TRD definitely should've beefed up a Corolla first to get the numbers they needed to stay afloat, then moved onto the Aurion. A quick Corolla would've come in at the right time to steal some early market share in the hot hatch category. Even if they didn't see soaring petrol prices and a potential worldwide recession coming around the corner, they should've seen that their #1 selling car was in an expandable category.