Virtual Surround. Both Grande and Civic have this option for their HUDs. It makes a difference. Totally agree with you though. Just saying that comparing stock speakers, even without tweeters, Honda speakers sound better. It lacks in higher frequencies of course, but the broad spectrum makes up for it.
Imagine, they charge 82.5k for Civic and 60k for City. Imagine the profit margins. Apparently they have to buy local, to meet requirements, and due to a severe lack of suppliers and competition, none of these OEMs bother upgrading systems sadly.
Before booking this City, I was looking to import a japanese car. So I did some research on after market sound systems (OEM systems are unbearable in JDM cars) and a shop was selling used 6" JBL speakers pair for around 13k. If you look at it this way, the price you pay for an OEM display can get you significantly better speakers.