The battle to break into the top four looks like being fiercer than ever this season and O'Neill thinks that can only be good for the Premier League as a whole.
From City down, six teams are separated by just three points and O'Neill said: "I am not surprised how tight it is and it will be good for the league if it remains tight.
"I have always felt this season that Manchester City would be strong challengers for the top four and so that has proven to be the case.
"Tottenham Hotspur have started very strongly but have had a bit of a hiccup just recently and you would always expect Everton, who have had a number of problems injury wise, to be coming back into it again.
"So I am not surprised but there are only 10 games gone and the top sides usually find themselves at the top."
As for Villa's own prospects, O'Neill is staying calm and he added: "There is a chance to go fourth in the league and the consequence of it is that is fine. I don't adhere to this thought that we might falter in any aspect."