I think having cities as extensions misses the point of extensions.
There are hundreds of thousands of cities in the world, and if Paris gets one then Nice will want one too . . . ICANN will have a hard time when all the other cities of the world want there own extensions. There is such a 'me too' attitude in the world.
It doesn't really enhance the user experience having thousands of extensions, because with more extensions to type the harder it will be to find the site he/she wants. The flexibility of the domain name rests in the name, not in the extension. How many domains already have the words 'Paris' or 'Berlin' in them?
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