"Today this [cup holders] seems like an obvious necessity in an automobile, but it was not always thought so. Automobiles have been around roughly a century, but cup holders were not considered appropriate for their interiors until quite recently, and the innovation didn't come from the automobile manufactures--they resisted them."
I found this passage interesting because I was surprised that the car manufacturers would resist something like this even though it would be so simple to put in a few cup holders and it would make customers more likely to buy their cars.
2. These categories do seem useful, however other names would make the categories clearer. I think that a better name for visceral design would be better named intuitive design because as I understand visceral design it is when something is designed so that one almost instinctively wants the product. Behavioral Design could be called functional design because it is (for me) a clearer way of describing that type of design. Reflective design could be called emotional design because it is about how its design makes you feel-like reminding you of a memory or portraying a certain image which both deal with emotions.
3. A designer could decide what type of design (visceral, behavioral, or reflective) is more important for a particular product based on who the product is targeted for. If the product is for children the product would be much more visceral design. However, if the product (like a tool) is for a construction worker then almost only behavioral design would be used. Some products are more visceral, behavioral, or reflective based on how well it is designed and who the designers intended the product to be used by.