I agree there are some ICE cars that get decent mileage. I drove three different Fords over the years that got 45-47 MPG Highway (had a long commute at the time) and I was pleased with that. I have never really thought that my hybrid would go farther than an ICE on a tank of gas, but that the tank is smaller so I go the same distance for less money. Where your Camry is getting 35-38 MPG, my Prius is regularly getting 52-55 MPG (I have gone as high as 67 MPG a few times). I am not impressed with a hybrid that gets under 50 MPG in daily driving. To me, it isn’t worth the extra money to buy a hybrid over an ICE if you aren’t getting stellar mileage out of it. I am not aware of an EV that can go for 500 miles before needing a charge, although I think that will happen eventually. Until it does, they are not for me.
How a person drives also plays into it. You can buy a hybrid or an ICE and get dismal mileage if you drive in a manner that wastes fuel. I regularly exceeded the expected MPG on any car I owned by finding out what was the most fuel efficient method of driving that model and then driving that way daily. It’s easy to get an extra 5 MPG out of a car if you are willing to try (and I don’t get it by annoying other drivers either).