I agree with the salesman, talking about style, point two, my wife likes the Mk4 more than our GK.
About point one... this are EU sales data:
The graph
http://carsalesbase.com/european-sales-2018-subcompact-car-segment/ says that european brands are main sellers in Europe, and all non-europeans brands fight for crumbs. All except Toyota with Yaris.
Another interesting data can be found here:
https://newsroom.toyota.eu/45-of-toyota-motor-europe-tme-sales-in-q1-are-hybrid-electric-vehicles/More than 50% of Yaris, in EUDM, are sold as hybrid, so looks like that non-EU brands can sell good amount of cars only if they have hybrids in their range.
I talk about Europe and not single countries, too small to be considered by manufacturers even if UK is main selling country for Honda, 1 Honda of 3 sold in EUDM is RHD.
My cent: maybe Honda big bosses have considered that in EU it's not possible to earn money anymore with their traditional powetrains in cheaper segments, so they're moving the production to hybrids and EVs. And maybe many of who would buy a Jazz in Europe would switch to hybrid if possible, so jazz sold with traditional petrol engines (and manual gearboxes) would be less than the present GKs; too poor sales for a variant, shipped from Japan, to be worth... So in EUDM only hybrid Jazz.
Maybe this switch is also to modify the brand's image as something of high tech, clean and "different from usual choice"...