ah I see lot of City owners or fanboys coming on this thread and trying to push their fav car above its weight. Yes it was a very decent economy car, the size, the power, maintenance, the drive except those legendary Honda's suspension all was pretty damn good. But notice the word WAS here. Its over its outdated, it is ridiculously priced and has a lot to desire for. But that doesn't mean it will be gone this is Pakistan we only just got rid of Mehran so it may still be alive for few more years unfortunately. So stop glorifying it, it was a good car and it did good that is it.
Now for Yaris it has couple of obvious shortfalls, one the little too much raised height and second the dimensions compared to expectation (which was corolla like dimensions). Rest you can't say much yet it will have to come on road and perform the test of time for any judgment.
So that test drive of yours seems a bit biased or judgmental, you may had higher expectations or may be you sir was comparing it to something which it is not. Sorry that what it felt like, will do a test drive soon but I am not good at judging a car anyway. Few others have test drove it and had positive impression but yes the common complain was raised height and narrowness.