To each his own with the cupholder. Searches here indicate dissatisfaction with it dating back to 2004, almost from the first post.
However, in the short time I have actually been able to drive my xfire, I noticed that styrofoam cups are a no-no. What little practicality these holders have is limited to cardboard coffee cups in the 8-12 oz range. Aluminum cans work as well, soda or juice of course.

As always, YMMV.
I have to be drinking a nice 12 oz. cup of Green Mountain Roasters blend while driving my roadster. That's when I'm very contented.