When the wife and I were buying a new car in 2007, we looked at the Element, and also at the Honda Fit. I took my measuring tape. The Fit had more interior space, including storage space, it got significantly better gas mileage, and it cost less.
We routinely took that Fit on road trips to bike races. I could carry my 58cm bike, a second wheelset, my wife and daughter, and a weekend's worth of baggage. Best car we've ever owned.
The Element seems like a good idea, but the execution was not great.