Just my 2 cents:
Though the 800 does not have power steering, I still firmly believe that it is better and easier to drive this car in the city than the Alto because of it's thin A/B/C pillars that afford fantastic outside visibility (best among all cars in India). I have never missed a power steering in my 800 (been in the family for 18 years and still going strong after 1.6 lakh kms) chiefly because of the fact that the 800's tiny 12 inch wheels dispense the need of any strenuous effort while turning the steering wheel even at parking speeds. For a new driver who is understandably apprehensive about driving a car in a crowded city, good outside visibility goes a long way in calming his/her nerves while taking the car out on his/her own. Also, an 800 never feels short of power in the city unless fully loaded or when the AC is switched on. The 800 also has fantastic low end torque (better than the Alto = no clutch slippage) which is something of a rarity in all petrol engined cars today.
Though there is no doubt that the Alto is a generation ahead from the 800 in all aspects of car making and is therefore a better car than the 800 but some sterling benefits (still) afforded by the 800 like outside visibility, excellent low end torque, sterling fuel efficiency, peanuts maintenance, etc can still not be disregarded for a first time car buyer on a tight budget.