Not everyone always travels with 7 people and luggage (and if you do, the Avanza is still a bit small for that). It's mostly a 5 seater that can also act as 7 seater if necessary. Won't suit every need, but some needs it will suit better than the Avanza.
Also the Sienta is much better than the Avanza if you have elderly passengers. Putting a wheel chair inside is easier, cause the boot lip is lower. Sliding doors mean a wide opening for the 2nd row, and you can stand there to assist the elderly person. With a regular door, there is no space for someone to stand there in order to assist. Entrance is also possible in a tighter spot, where you can't fully open the door. The lower floor means the elderly person doesn't have to climb into the car. Just let him sit on the seat, then the assisting person can lift his legs and rotate the person. Inside he is.
To me it is the better car. Plus it drives more like a car.

There is some space for luggage. The Avanza looks a bit bigger, but the difference isn't big. And once you travel with 6 passengers, you have a lot more boot space in the Sienta. You can completely fold away the Sienta seat, while the Avanza still has a huge seat taking away lots of space in the cabin.
Once you need to bring along bigger items, the Avanza has completely lost, and sedans can't compete either.
We have a Kangoo, and were able to transport 5 adults and a big massage chair (plus a bit of luggage) with it. But we had to remove the 3rd row seats for that. In the Sienta when folded away the 3rd row seats don't take up any space. It's brilliant.
So it does have some space behind the back seat after all. That wasn't obvious from the other photos. It's alright then.
But for the price why not Innova? It has even more space and a good 2.0L engine.