Well i love Corolla for Durability and Honda for Technicality
But if i see on the papers thn Xli have no match with City thats very sure as better engine Power to weight ratio and ABS and others but with previous City its body is just like Piece of paper nothing solid at all but current model i dont know much as yet to come across some experience as Old city if hits Bi-Cycle thn by appearence it seems have Truck's kissing, but for Pick and petrol consumption it was marvelous ( i m not talking about CNG) but we had one City in Kashmir believe me it was very nice but after some time it have introduced many type of sounds and also not durable on bad roads but i love its compactness for smaller roads. as actually its between hatch back and Sedan.
For Corolla Xli Toyota have nothing good on papers as Xli is there lowest brand here as Manual Windows, Mirrors no ABS, no Air Bags and Blah Blah but if u have seen its far more durable then City as i am not able to see any City lived 4-5 Yrs of abusive use in Rent a Car or some Office with 250k on ODO and still going strong but Toyota would be going still much better if not best.
Other thing i Love to get HOnda City for my personal Urban Area use or uf i have small family but if i need to use it to travel NWFP, Punjab, Sindh or Balochistan Interior Rural Areas and with Family thn i cannot use Honda as its Delicacy can cut my pleasure but i would be much confident tht Toyota low Spects car can take me there nad bring back in one Piece and Peace.
Honds is like Girl Friend and Toyota is like Wife, u may not like her too much but can live with her for long time.
In my belief Dont only check Car on Papers or looks, check the specifications and thn check ur needs and match them andbuy the car which matches ur requirements and give it a chance.
For safety both cars are sh*t as both are not compatible with International Safety Standards actually thy should have some safety tests imposed by Govt but thy r busy to fight against terrorism of Money from last 10 Yrs.
My personal choice for family will be Toyota Corolla any Variant according to my pocket size and for personal urban use and pleasure Honda City or Civic.
I think Gli should be introduced with Auto Transmission with same price to make some changes as current Corolla Model is only change of shape else is same