statement 1 on city better: in term of technology, there is no deny, as you can see honda is putting more effort to improve the car, whereas you basically see nothing much change in vios

statement 2 on spec: retire iDSI, replace with L13A, possibly remove startup clutch, replace with torque convertor(this one really unexpected), belt tensioner, etc. can check in temple of vtec for the i-vtec feature in fit/jazz which possibly in up-coming fit aria/city too. there is no 5-speed auto, its CVT

statement 3 on Toyota work harder: its a funny thing, despite Honda tries to improve in terms of technology, toyota still sells better, this is the taste of local ppl, cant blame...but every type of car has its targeted group. So no comment.