Maybe this is just a strategy to draw away attention from the "real" thing, a LARGER Cayenne?

But to be seriously: I don't think a shorter Cayenne makes sense for Porsche. Maybe in Europe but in the US? In the US, even the current Cayenne seems to be too small and although it seems that big SUVs are loosing customers in the USA because of the high fuel prices, I don't think that Cayenne buyers really care about that.

Personally, I would never buy a little Cayenne...what for? For the kids/family, it would be too small. For me and my wife? We prefer sportscars, this is why each of us has his own little racer. So where does a little Cayenne fit in? In Europe...maybe. The BMW X3 sells like warm bread (a saying... ) over here in Germany. But to me, it still doesn't make much sense. Porsche should build a Cayenne Diesel or finally come out with an innovative Hybrid model. A little Cayenne would maybe attract potential BMW X3 buyers but I don't know if the US market, the most important one for Porsche, would accept such a little SUV. It remains to be seen, especially how the fuel prices develop over the next 24 months.

But I still put my money on the larger Cayenne, the Audi Q7 is practically the twin of a possible larger Cayenne, it would be foolish for Porsche not to use the same platform, especially since it is based on the Cayenne/Touareg.
Maybe Porsche wants to wait to see how Q7 sales are developping.