An SUV is classified as a light truck and isn't subject to CAFE fuel mileage standards like regular cars are. A station wagon was classified as a car, and the auto manufacturers found it pretty hard to squeeze them into the standards. When the family of five went to buy transport, rather than buying the trusty 'ole station wagon they either had to squeeze into some other car (all of which were getting smaller and smaller - no more "built like a tank" roomy 1971 Buicks) or ... hmmmm, what's this thing over here?
Boxy vans were "in" for a while, but geez those things looked (and look) ugly. They tried to sleek them up and make them sexier, which worked somewhat, but whoever it was that came up with the SUV somehow had the right combination of looks and room and people started getting the damn things even when they didn't need them.