I'm not sure why you compared the Mustang to an Explorer though. I mentioned the thunderbird as being comparable to trucks, and those were well over 200 inches in the 60's. It's still an exaggeration to say that's as large as a truck with a crew cab in most cases, but the 209.4" length of a 1969 Thunderbird sedan is slightly longer than a Ford F150 with a regular bed size at 209.1". They were all, by most measures, much larger than their comparable categories today, and much larger than those categories a decade or two ago.
They still make the Mazda Miata, BMW 1 series, Toyota BRZ, etc. These are all small cars, although I'm not going to research all of their dimensions. The truth is there is a very small minority of people who want cars smaller than that, and it's not profitable to produce them.
This is verifiably false with three minutes of searching, which I did on my cellphone as I sit by a campfire. As an owner of both a 1965 Mustang and a 2015 Explorer, the difference in size between these vehicles is comical. I've rented a 2020 Camry that was larger in every dimension. It got great gas mileage, but small it was not.
1967 Ford Mustang Length: 183.6" Width: 70.9" Height: 51.6"
2020 Toyota Camry Length: 192.1" Width: 72.4" Height: 56.9"
https://en.m.wikipedia.org/wiki/Ford_Mustang_(first_generati...
https://en.m.wikipedia.org/wiki/Toyota_Camry_(XV70)
The 1965 Mustang was even smaller and lighter. The 1969-1970 Mustangs, while larger, are still smaller in every dimension than a modern Camry. Some older cars were indeed boats, but almost all modern American automobiles are boats, and a lot of this has to do with the laws that regulate and shape the products created by the American automotive industry.