I agree 2C Diesel is from pre-historic times, but i also don't see a reason to blame Toyota here. If you want someone to blame, blame Indus Motors.
I agree Civic has a bit stiffer suspension, then also it has less comfort and lesser road clearence. Infact way less comfort. Drive a VTi on a bumpy road and then drive a "Saloon" trimed Corolla. If you're capable enough you'll infer something in the end.
What is it that Civic has and makes Corolla look like a knitting monkey? VTEC, i-VTEC, AVTEC is NOT it and is NOT worth to put your life on the line. These are simply terms manipulated by the marketing people to fool you. And thou stand fooled. If you need facts:
The only "marvelous" VTEC's were the VTEC of the old school which don't exist now. Which Honda actually copied from Porsche. I know, every damn freaking website lists VTEC as an invention of Honda, but behind curtains, it is a copy of Porsche's Variable Timing System.
Oh yes, Toyota does not spend money on R&D. I wonder where cars like Lexus LS, GS, IS came from. Where did the beautifully synchornized Petrol-Hybird LS600h came from. Where did IS350 came from that gives old M3 a run home. Where did IS220d came from, which is by far the most powerful engine in its class. I wonder how Toyota managed to outsell cars like S class and 7 series come from. If their cars were made by marketing people, then it would not have taken long to go bankrupt.
Corolla never loses to Civic due to aerodynamics. Most drags are upto 160. At that speed drag doesn't even come into equation. We are not doing 220mph runs in Ruf Rt12 vs LP640 here. So please! Supercar fantasy physics never applies to family cars.