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...As for the Fit versus the Civic, thats a bit tough. I generally consider the Fit to be the "true" Civic in the Honda lineup myself, more of a successor to the CRX of yore...
That I agree with, at least when it comes to target market and size. The new Civic is way too big to be considered a real city car. But the main problem is that the current crash & safety regulations force a very different type of car at that size compared to 20 years ago. You can't have your butt skimming 6" above the ground in a glorified tin can. With so many SUV's and other oversized sedans out there you'd be dead with your head at the same level as their bumpers.
I guess after 15 years of hatches as boring as the Golf IV, the Fit probably is quite fun. I haven't driven the Fit yet, but I've been inside. It's far and a way a better-made car than the CRX I'm considering. But it's too well made, if that makes any sense. Too much sound insulation, too competent a suspension, too soft steering...it all adds up to a car that insulates your senses from the road. In a small car with low power, that connection is all you have.
Besides, 40MPG for US$2,000, and it's fun! How can you beat that?