It was always my understanding that "city lights" were for European regulation compliance and that they weren't off putting enough for the expense of removing them from U.S. and elsewhere models.
That is kinda what I said (somewhat here, more in other threads)- but there is no way to turn off the headlights with any model C14 (that I am aware of) so the city lights don't seem to serve any purpose in ANY market with the first "purpose" (running instead of headlights while moving). And the second "purpose", while parked with the ignition on, the city lights do come on without headlights, but then there is no way to remove the key! So that is just as useless- one couldn't/wouldn't ever leave the bike that way or it would be stolen.
So it is still a mystery. Almost like they were designed to be there FOR a regulatory purpose, originally, but then at the last minute they decided to not really implement correctly and just left them there.
Just as annoying- there is no way to use the hazard lights either, without the ignition "on." This is contrary to all cars..... nobody would leave their [unattended] vehicle in an unlocked condition WITH THE KEY PRESENT and removable just to use the hazard lights; unless maybe the bike would not run. But even then, it would be very risky. Of course, the alternative is that the hazard lights work with no ignition and someone plays with it and drains your battery dead. They COULD have had some timer on it, so it would blink for 30 or 60 minutes or at a certain voltage and then stop, I suppose..... but as far as I am aware, it doesn't have that ability either.