The conclusion in your first sentence doesn't flow from your premises, as I read them. Could you restate what it is you really mean?
In Toyota's case, the dealership and especially its service department are the weak links in an otherwise very strong chain (in re: quality of product). I wish Toyota would address this serious shortcoming in their organization. But it isn't just Toyota. I've owned Ford, Dodge, and VW in addition to my '02 Classic, and all their service departments were pretty much rip-off artists, IMHO. Which is why I always go to my trusted mechanic after the warranty period is up. In the case of Prius, my options in this regard may be more limited, but keep in mind that much of the Prius (ICE, brakes, wheels/tires, A/C, etc.) is pretty standard automotive technology that any competent shop can deal with.
Concerning the so-called "lemon watch list": that topic has been discussed at length and ad nauseam on the Yahoo Prius site. Turns out the listing for Prius is a statistical quirk based on an extremely small sample of cases, some of which turned out to be the same incident listed more than once. If you really want lemons, buy a Ford Focus (as I almost did before I came to my senses). You'd use up all your fingers and most of your toes counting the number of recalls on what should have been a terrific vehicle.
As for the assertion (in a previous post) that Prius gets better city mileage than highway, most real-world experience including my own has shown just the opposite, just as one would expect for a conventional car. Toyota's claim to the contrary, for whatever reasons, was off-base when it comes to North American driving conditions, patterns and habits.
The sun-and-planet gearing in the Prius version of CVT has proven to be virtually trouble-free, and it's a joy to drive. I can't imagine going back to conventional automatic transmission, which I'm reminded of every time I fire up my '91 Explorer (as seldom as possible now: every minute it sits in the driveway I'm saving $$). I loved to drive stick shift in my '64 VW Beetle and '88 Escort (and mind you, I learned how to drive in a '41 Ford Super DeLuxe V8 coupe), but to me, a manual transmission in a hybrid makes no sense at all. But, to each his/her own.