The battery/traction motor technology isn't quite where it needs to be at this point in time to expect 40MPG in any city driving.

Don't feel bad. I only average in the very low 30's but I'm a lead foot and also encounter steep hills as my normal commute. I also drive my TCH like a normal vehicle (life is too short to drive like a granny and fret over MPG).

The folks achieving 40 MPG numbers are not driving what I (and probably a large percentage of other drivers) would consider normal.