Yes, I completely agree with your statement that the Indica Vista is very possibly the most under-rated hatchback in the country at the moment. In my opinion, it looks quite nice and modern, has a decent petrol and a good diesel engine, is EXTREMELY spacious and comfortable, has a pillowy ride and is loaded with features at a mouth-watering price. Spec for spec, the Vista is probably the most VFM hatchback on sale today. I believe it has never really taken off due to poor marketing by Tata Motors and the "Indica" tag name attached to it, which basically is a second name for "Taxi" today, and that I believe is a major deterrent for first-time hatch buyers today. However, I wouldn't say that this would not do well as a first car-it is essentially a very capable hatchback, and in my opinion, right up there with the very best in its segment.
And I don't think Tata's target buyers want form over function. For them, form can come later, or even possibly never. Tata buyers have one thing on their mind, and that is functionality and space, that too in spades. And that's exactly what Tata gives us. Allow them to price their cars higher and eat me for dinner if their cars don't beat their rivals in each and every single aspect (including plastic quality, which it seems today has become a deciding factor for small car buyers).