thoughts on first item: I agree with the ugly point. Unless they do it in good taste...though I'm not holding my breath...it's hard to make green look attractive on anything, imo.
On the other hand, the "green movement" is FAR larger, and older than the mpg war brewing within the auto Industry, and personally, I see very little wrong with being environmentally responsible (besides the enviro-fanaticism that is unfortunately associated with the movement). That said, over 40% of GM's plants are 100% landfill-free, and they have one of the largest solar panel arrays in the nation, if not the world (and are building a second, to my knowledge). Coupled with other enviro-friendly projects the company has taken on, I think the color green and it's recently associated meaning suits them.
second item:

If they're smart...another thing I'm not holding my breath for

...they'll stop buying into these bleeding heart stories that a FEW dealers are telling, and abandon, or delay this legislation.