We have one and I have a Honda Fit (so I'm assuming my backseat is even smaller than yours). It only fits in the middle (which was fine with me!) and yes, ours does recline quite a bit.
He's definitely more upright then an infant seat (oneof the reasons we switched earlier than we needed to b/c he wanted to sit up), but it does recline enough for us. He doesn't sleep as much in it ( I think that's just age and our planned trips around nap time) but he has fallen asleep and slept in it comfortably.
Re: Anyone have a Recaro?