I don't agree with your power comparison. Put 4 adults in both cars, turn on AC and you will see the difference. I have travelled in 660cc cars. Their engine runs on very high RPM in full load condition.
Yes fuel eco is better in 660cc. But then thats a general rule. You need more power, you buy higher cc. You need economy, you get smaller car.
My only point here is that, people are spending 12 lacs on imported 660cc which has almost same features and its a used car and sometimes repaired after import. Suzuki will never cut price, you can already see people buying VXL in 14 lacs. If 14.5 lac with CVT - its a perfect car.