I hope they rethink this. I understand that they are promoting the quality part of the iQ, but if they really want to compete with the smart (and without a tridion) they should price it comparably. This article has convinced me to keep my smart reservation a little longer and keep an eye on this. I can only afford what I can afford especially with smart and yaris out there for less.
You seem to have bought a little too much into the Smart marketing. Toyota has an extremely high crash safety standard, and the iQ should rate among the safest cars in the class, as will be hinted by the 5-star EuroNCAP results that Toyota aims for (don't let us down!).
A look at the track record from the respective companies shows how the cars compare: http://www.euroncap.com/supermini.aspx
In other words. If you feel safe in a Smart ForTwo, then any other car rated better with a higher weight deserves just as much faith. One should also remember the active features: Maneuverability, braking, tendency to tip over, and so on.