Yes maybe that is true, and I agree, if I had my way I'd have kept Oriel detuned with sensing, and RS with higher power without sensing. That way, both groups would be happier maybe, and the price difference would've been less.
The thing is, you probably live in or near a big city where petrol quality is usually good. But a lot of people also buy cars that don't have this luxury. Already the perception(as you yourself have stated) that corolla is better for rural areas, and is more 'rough and tough' than civic. Atlas is actually trying to get a chunk of buyers from that crowd. Maybe its a flawed business idea, but it is what it is.
The market for 'sporty cars' here is very small. People would rather have a reliable and fuel efficient car than a powerful one. Most people who have that itch probably won't buy an XI, but rather something like a mark x 300 or 350, or maybe even an RX8. Much more performance for much less money.