The X1 is already at the smallest end of the SUV spectrum....any smaller than that and it's basically a 4-door hatchback, IMHO. I like the X2, but at the end of the day I'd probably just get a 4-door VW GTI hatchback and a tuner kit and call it a day (and maybe pocket a small bucket of cash).
It'll be interesting to see if this shortened X1 variant finds its market. This new peppier model is bound to help.