Zuhaib bhai, case would have been different if we compare new latest city turbo (top of the line variant) or even prev gen city top of the line variant 1.5L cvt (Honda Grace shape which unfortunately never came here) with base variant 1.6L CVT civic X with same features like 1.6 Altis (which is not available here). In that case many potential buyers would have preferred City over Civic.
Your example doesnt make any sense ! You are giving an example of decade old city which lacks basic safety features and comparing it with hardtop Civic X 1.8L CVT which now has all good features including push start smart entry cruise control retractable mirrors etc
Comparing top of the line variant of Yaris with Altis 1.6 which not only lacks many good features but has 20 year old 4 speed auto tranny is a totally different scenario
If current Altis 1.6 had CVT and not that 4 speed auto tranny which kills the potential of 1.6L powerful engine my answer would have been different ! But if we look at the current scenario Altis 1.6 should be considered only if you need a bigger car which can accomodate 5 ppl. Other than that for daily routine city drive Yaris is a better option. Yes I know Corolla's suspension is really good but Yaris's suspension is equally good with same soft cushioning effect on bumps and potholes.
I kept 1.6L Altis FL for almost an year, will share my experience after taking a test drive 1.5L Cvt Yaris.