Below is entirely my personal opinion:
Standing side by side GM7 and GN1, GM7 looks more graceful, GN1 more fanboy wannabe Accord put in a compressing machine and churned out.
This is after personally inspecting and driving both cars. Creature comfort in GN1 is far better though.
Secondly,
It is not about the time, it is the amount of price increase they will have to absorb for the ROI. Seeing the last pama reports city is still selling in good numbers at this time.
If they bring in 6th gen it might be a 150k jump that might be acceptable to the people. For the GN1 they will need to completely redo the fabrication and assembly facility. that will be huge cost impact and will result in ciity being 250 to 300k more expensive. At that price point customer will either buy the cheaper Yaris, or extend the budget a bit and get an Altis.
That is the dilemma with city now, they have left it too late. Yaris is already making good market and it is outselling city, with price increase it will be suicide for Atlas