Agreed, since civic is reaching out of reach now crossing 4 million, plus with the growing SUV segment in this price bracket Honda will suffer huge loss in sales, the 11 gen civic if introduced will even be more higher priced.
Thus city is the only future for Honda, who knows like in India civic might get discontinued.
Even if 7th Gen is more expensive it'll give tough competition to altis 1.6, cerato, elantra, mg etc. They should've brought 7th gen only for Turbo and 1.5 top variant, continuing 5th gen for lower variants side by side.
Yaris outperformed in sales with civic city combined. Seems honda hasn't learned their lesson.