Well, the customer is never wrong. As a company that provides a product you can't just ignore a huge market of potential buyers because you think a vehicle is stupid. The customer is always right, they want what they want, and they're willing to pay out the ass for it. As a carmaker (or any type of company that makes a product or provides a service) you can't just come out with a vehicle that nobody wants, you'd go bankrupt. It would have been a very poor business decision for GM to ignore this demand for this vehicle. They can't make enough H2's, its a huge success and makes GM and dealerships a fortune.
You say "they could do it in style" well, they are doing it in style people love the H2, theres a guy down the road from me with TWO! He parks them on his lawn just because he can. They're everywhere here and they always draw a crowd. If you were talking about the Aztec, that was a flop for GM, then you could say "they could at least do it in style", but not for the H2. It is very much in style, and the buyers love it.
Your opinion is the vast minority, and thats why carmakers don't care about it.