Since it arrived on the scene in 2004, the Mazda3 has performed a valuable public service, showing Americans that compact cars aren’t always about lowered expectations or lowest price.

Like the Mini Cooper, the tidy Mazda demonstrated that small and premium can coexist happily. Handsome, smartly appointed and more fun to drive than its rivals from Honda, Toyota, Nissan, Hyundai, Ford or Chevrolet, the Mazda3 lapped up praise and awards. Among its achievements, this well-bred underdog has done stints atop Canada’s best-seller list in 2009, displacing the Honda Civic from its perennial perch. In the United States, the 3 is Mazda’s go-to player, representing 44 percent of the company’s sales last year.

Like the previous version, the new-generation model generally costs more than its thrift-focused competition. When loaded up with options or high-performance tweaks, a 3 can top $25,000, pushing it out of reach for some people. But as with the Mazda 3’s closest competitors — the equally well-equipped Volkswagen Golf and Jetta — a lot of customers have found the Mazda to be a persuasive example of getting what you pay for.

The new 3 still shares its refined platform with the European-market Ford Focus as well as Volvo’s stylish C30 hatchback and S40 sedan. (The kissing-cousin relationship springs from Ford’s stakes in Mazda and Volvo).

Among the advantages of that relationship is a driving experience reminiscent of the small-but-satisfying Euro cars you may have rented to explore Provence or tour Tuscany. Unfortunately, the restyled 3 looks like one of those callow tour guides who, for no apparent reason, wears an ever-present grin.

Much has been said about the car’s new face, which the company says is meant to be polarizing. (Mission accomplished, Mazda!) The front end does help to route more air over the hood and sides, reducing aerodynamic drag. On the other hand, friends who saw the car likened it to a baby baleen whale ingesting krill, or a loopy jack-o’-lantern.

Though the smiley face gives some viewers the willies, the rest of the restyling improves an already endearing car, whether in the form of a hatchback or a sedan. Flared fenders nod to the Mazda RX-8 sports car, and new creases in the sheet metal add definition along the sides. Exterior dimensions are subtly changed, including a 3-inch stretch in length, though there’s negligible gain in passenger or cargo space.

The remade cabin does its bit to uphold Mazda’s reputation. Instead of the Wal-Mart malaise that wafts through some rivals, the 3 draws you in with smart design, expensive-looking materials and classy switches.

An owner of modest means could proudly invite a parent or a finicky boss into the passenger seat, even in the basic 3i Sport sedan, which at $17,575 is the least-expensive version available with an automatic transmission. (For the devoted bottom-line shopper, a bare-bones 3i SV sedan starts at $15,795 with a five-speed manual, though you’re unlikely to find many of those in showrooms.)

Plusher models, including the Grand Touring, offer options that can’t be found in many competitors in this class, including leather seats, 8-way power memory seats; dual-zone climate control; a navigation system; keyless locking; xenon adaptive headlamps that pivot up to 15 degrees around curves; and a Bose surround-sound audio system. The top-shelf Grand Touring model with an automatic transmission kicks the cost of entry to $23,050.

Standard features include four-wheel antilock disc brakes with brake assist; six air bags, including a new faster-inflating side-curtain design; and active head restraints.

Lower-price models get an engine carried over from 2009, a 2-liter 4-cylinder with an adequate 148 horsepower and 135 pound-feet of torque. That engine is rated at 24 miles a gallon in the city and 33 in highway driving, with a new five-speed automatic helping to raise mileage by 10 percent from last year.

People who favor the practical hatchback model have only one engine choice, though a good one: the 167-horsepower 2.5-liter 4-cylinder, a bored-and-stroked upgrade from the previous generation’s 2.3-liter unit. The bigger engine is extremely smooth, with generous midrange torque urging the Mazda to 60 miles per hour from a stop in the mid-seven-second range.

For buyers who want to drive the Mazda at maximum capability but don’t want the runaway-terrier personality of the hard-edged Mazdaspeed3, the 2.5-liter is a must-have. Let’s hope that in the future Mazda will give hatchback fans a less expensive admission ticket by offering a hatch with the base engine.

The winding road is where the Mazda3 really pulls away from the budget-car herd, revealing a pleasing level of sophistication. A new electro-hydraulic rack-and-pinion steering replaces a fully hydraulic unit. While its effort is light, the sensitive feel and limber suspension allow you to point-and-shoot the Mazda with joyful precision. Even in the low-power base model, once you’re up to speed the 3 mows down preconceptions of how an economy car is supposed to handle.

Even if the new 3 is not the roomiest or cheapest car in the compact class, it’s about the most fun you can have without blowing the budget on the Mazdaspeed version, on a VW GTI or on all-wheel-drive assassins like the Subaru WRX STI and Mitsubishi Evolution.

If only we could do something about that face.

2010 Mazda3

Base price: $17,575

Type: Front-wheel-drive compact sedan or hatchback

Engine: Base 2-liter 4-cylinder — 2.5-liter for the hatchback — mated to a five- or six-speed transmission

Mileage: Starting at 21 mpg city, 29 mpg highway