The new larger Fiat is still very small but somehow manages to have a giant-sized interior.
With the back seats in their "full, upright and locked position," to borrow airline parlance, the 500L has about double the luggage space you'll find in an ordinary compact cars. It's even got more than an un-ordinary compact car like a Kia Soul or Nissan Cube. But fold up those back seats, which you can do easily, and this car looks like it could just about swallow a Honda Civic. (OK, that's an exaggeration, but you get the point.)
By the way, the front seat here is in the normal driving position, not scrunched up toward the steering wheel so, yes, this is a realistically usable configuration.