Well as many guys have already pointed out differences between City and XLi in many ways such as drive performance, engine, braking, looks, pricing, interior, additional features, comfort etc I would just like to say that based on that City is better than XLI.
But guess what, if I have to choose between buying an XLI 2009 or city 2009, the decision is simple - I'll Choose XLI. Why? simply becaoz the exterior looks of XLI 2009 model is great (a bit like Camry) while City 2009 is very average. Hence, this one featuere (that is car looks) is so important to me that it is the deciding factor for me, no matter how great city engine performance is or presence of ABS, power windows etc.