That's a sensible choice. For me, I booked the City for 2 reasons. A) The 7th gen would have an absurdly high price. The car is expensive globally, and it's only available in the 1.5 variant. B) Whatever car we purchase, it has to be in line with the market, that is to say that the new City cannot be worse than the Yaris, because that is how Honda has introduced vehicles historically. Expect features a step down from the base spec civic, meaning no sunroof, no 6 speaker setup, no paddle shifters. Perhaps we will get rear AC vents. At the end of the day, Honda is a really predictable company. They want to beat Toyota and Toyota knows it. They have already bumped up the production of the Yaris, giving delivery in less than a month. They know that City will break Yaris sales.
In short, pre-booking the City for your family is a safe choice. At best, it will be 50k to 100k more expensive, which is not really bad, because that is where the global car market is right now (with more features tho, not arguing that at all). The only reason Honda does this (what I can imagine) is to bring a 2-step pricing system. Offer a different price to those that pre-booked the car, and then a few months after release, increase the price (which is very likely for a car like City, people will buy it anyways).