I got my City couple of weeks ago and enjoying it driving within a city. Its handling within a city is superb; much better than new Corolla XLI/GLI (first hand expereince); even way better than Older Corolla Saloon.
Few days back I took it first time to highway for a six hour round trip; City is much lighter than old/new Corolla and on 110+ (With 195/65/15 tyres even) it feels that its running much faster. The only bad point of it so far...
So if you travel long routes often; go for Corolla; if you want "kashkas" and mostly drive within city; City is way better than Corolla