I'm sorry to tell you that you will *never* get that 'urban fantasy' label back where it belongs, it's gone where it was never meant to be, but it's there now. (And I am *all about* books that feature Werechipmunks in Central Park, so I'm not entirely poohpoohing this thing.)

An alternative would be to float another, SMARTER, term to describe fantasy that meets your criteria of what it's about (rather than just where it's set). Some suggestions:

1 Polisfic
2 Stadtfic
3 Urbfic (or Urbfan?)
4 Villois (pl Villoix)

Zaf