I drove an 09 Corolla 1.8L today, and it is no dynamo, but a very refined sedan that is now superb value. The AT version only has four speeds (on some models) but the ratios are well chosen and the shifts smooth. The manual trans has a nice clutch and easy to use shifter. Suspension is soft and there is lots of body roll, but overall handling is reasonable for a car tuned so far towards comfort. The new electric power assist is better, but still overboosted at highway speed.
The Corolla is now barely more money than the Yaris and offers nearly identical fuel economy. If you're in the sedan market, the Corolla is a clear winner over the Yaris sedan, but the Yaris five door offers more versatility.
Toyota adding content and chopping the price has really put the new Corolla in the winner's circle for transportation. The Civic has better driving dynamics, but there is something in the Civic's seats that that literally rub me wrong, and there seems to be no way I can get comfortable in one. Also, the DX-G AT model is $2500 more than the CE-enhanced AT Corolla. In the $20K segment, $2500 is a TON of money.