I think they're really talking about opportunity costs. Dollars spent on making oil-burning engines more efficient are dollars not spent on developing technologies to replace oil-burning engines, and replace is really what we need.
but it is just ignorant that efficiency gains aren't paying off. The number of miles driven versus the fuel cost to do so quickly and absolutely justifies the efficiency gains of the past three decades. There is no reason to not think this won't carry forward.
Yes there are many opportunities in replacement but none have won out and more are on their way. None are at a price point where those least capable of the costs are going to be able to take advantage of them. So in that meantime we keep pushing the cost of burning fossil fuels down.
