There is no way 1.2 and 1.33 have the same torque curve or are even anywhere . Yes Peak hp is irrelevant. But Toyotas have better low end torque and Honda going down to 1.2 will make the low end torque difference even more pronounced.
The biggest issue 1.2 fans are ignoring is that the 5th Gen 1.3 city with manual was just barely acceptable. Anything below it will feel terrible and with a few passengers, 1.2 will be terrible to drive due to a huge amount of load on it.
Also why should we give atlas a pass just cause corolla used to have an even lower powered engine? Senseless defence. It doesn't excuse the city 1.2 from being underpowered.