Yeah, in 1.0 your starting city and starting class could both be selected individually, FFXI style (I know this for a fact as in 1.0 I started as a GLA but started in Gridania ;)). Not to mention in 1.0 you could also start as a Disciple of the Hand or a Disciple of the Land, you weren't restricted to playing as a melee or mage if you didn't want to. ;)
The reason for the change is in ARR the early tutorial quests when you first arrive involve amongst other things, joining your starting class's Guild, hence the restriction where your starting city is determined by the location of your class's Guild headquarters. It's a change that's had to be made for the sake of gameplay.
