Nothing wrong with CITY... I leave mine on all the time
CITY has a lesser-known secondary function in the Punto and Stilo (if not the others); it re-maps the accelerator pedal response to reduce the throttle openings that you get, theoretically making city progress smoother.
The additional steering assistance tapers off as speed increases - by 40mph/70kph it's the same as if CITY is off.
Bear in mind that the amount of assistance makes no difference to steering geometry (camber/caster: self centering/feel), no difference to the number of turns lock-to-lock (and therefore the amount you turn the wheel), and no difference to tyre grip and therefore cornering ability.
I really don't see why you'd turn CITY off, except to possibly extend the life of the steering column motor - but even that is uncertain, as some columns fail after a short time and others last for hundreds of thousands of miles. I think the best thing you can do is to avoid turning the wheel when the car is stationary. That goes for any car, whether or not CITY is on, off, or there at all.
Those that think you're really tough - you bought the wrong car anyway
You should have bought a TVR or something with fat tyres and unassisted steering (like my Uno Turbo
)
-Alex